If the customer base exists, and the promoter can rely on word of mouth for advertising, why is it a red-flag to not want to pay anyone for advertising?
Also, why is it a red flag to accept cash, which 100% of attendees can produce instead of relying upon other payment methods which have been shown to make less money for the promoter?
Sure, some promoters and business owners will evade taxes, but people do that anyway for all sorts of businesses. In this case, accepting cash only is not an indicator of attempting to evade taxes.
In an all cash business, the truth is you make money hand over fist. You can't count it fast enough, even with your door person skimming - which you already expect to happen. Besides, you don't have your door people stand around all night with loads of cash in their pockets.