Lee, who last week was suspended from the World Snooker tour after the sport's governing body opened an investigation into suspicious betting patterns, was due to play Mark Allen.
It was one of two matches planned at the Penzance Leisure Centre; Neil Robertson's clash against Stuart Bingham was also called off after organisers decided a single match did not represent value for money for the paying public in Cornwall, or the watching television audience.
The Robertson-Bingham meeting has been rescheduled for October 25 at the Guildford Spectrum.
All Lee's matches in Group B of the tournament have been declared void, essentially making it a four-man pool, instead of the five-strong group it started out as.
Thursday October 25 - Guildford Spectrum
Stuart Bingham v Mark Selby
Judd Trump v John Higgins
Stuart Bingham v Neil Robertson
Thursday November 8 - The Dome, Doncaster
Mark Selby v Shaun Murphy
Judd Trump v Mark Allen
Thursday November 15 - Spennymoor LC, Durham
Neil Robertson v Ding Junhui
John Higgins v Peter Ebdon