So much for competition...

I attempted to enter my On a Limb watercolor painting in a competition hosted by a local gallery that started to exhibit my original paintings last December. I was told they couldn't accept my entry because the competition was for amateur artists, and since I was exhibiting with them, I was more of a professional artist.

Pros: I am considered a professional artist.
Cons: I have outgrown the local pond - this is the second competition where I have encountered this kid of response to my work.
Pros: I have outgrown the local pond!
Cons: Now I have to find opportunity further afield.

What do you think I should do? Should I be sourcing and entering larger competitions? Should I concentrate my efforts in seeking out gallery representation in larger centres? What has worked for you?