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As far as this goes, it means its up to Gilpin/Lodge to decide how many places pay. Why then would they not allow 6 players to chop when all wanted to. The lady was very adamant that Gaming won't allow more than 5 spots paid

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It was previously 5 players. There was a very recent (June 1?) where it was changed to the number of places paid. IF the tournament is advertised as paying 5 places there cannot be a 6 way deal.

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So, it used to be restricted to 5 place payouts and only recently changed?

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They have always paid deeper than that in large tournaments, but previously only the top 5 could make a deal to divide up the tournament prize.