Simunition is used for force on force training all the time with only minimal additional protection, (face mask, gloves and heavy sweatshirt). I don't really see a problem with it. You can't chamber a regular round in a simunition chamber so as long as controls are in place to keep a non simunition chambered firearm out of the cage no worries.
Now to see what simunition thinks of it, if they don't like it they can refuse to sell to him.
Just sounds like Vegas has figured out a way to gamble on a variation of paintball. Simunitions don't hurt that bad, especially with all the padding these guys will have.