A World War II video game tournament due to be held at a Sydney RSL club in May has been cancelled.

The decision comes after Liberal MP David Elliott announced he was making a formal complaint about the Call of Duty: WWII Tournament promoted by the Castle Hill RSL club.

"I am trying not to be politically correct but widows of World War II will look at this and think there is no entertainment in WWII and question its use in an RSL club to enable people to win cash,” said Mr Elliott, who is a patron and past director of the club.

Promotion material for the Call of Duty tournament at Castle Hill RSL.

Castle Hill RSL group chief executive David O’Neil said the club has hosted eSports events in the past “without incident” but accepts the WWII focus of this particular event was “not an appropriate one for an RSL club”.