Corrected entry: In the finals, when White eliminates Peter but was over the line, wouldn't being over the line cause White to be kicked out of the game and thus giving Average Joe's the win, and not force a sudden death?
Correction: I feel like this is more of a question than a plot hole. Regardless, the referee called for sudden death... so it went to sudden death.
Correction: As explained earlier in the film, a double-fault results in Sudden Death. Dwight had already illegally hit Kate with a ball, so stepping over the line was his second offense.