Yeah, but in most games of skill you have some system in place to ensure your best players don't drive away the worst. When money gets involved things become murkier though.
It's not about tying their arm behind their back, it's about putting skilled players against skilled players. In pretty much any skilled game you have rough tiers that people of similar skill level face eachother.
In general, high school teams don't play against pro teams. And if they do, we don't call the high school team "suckers" if they lose.