The CRA has strict rules when it comes to gambling, even under a charity. These fall under the Income Tax Act.
Was the car show sponsor registered as a charity if they were collecting? If so, max payout can be up to $50,000 but it has to be reported as winnings.
If they are just asking for donations to support a charity, ie no license, legally, they can only pay out to $500. Anything above that has to be declared by both parties.
CRA is aware that almost everyone breaks this rule and are cracking down on lots of these shows and it doesn't just happen with cruises.
The CRA wants their cut.