No, your game does not need to be judged or verified by the Epic Staff.
And just to clarify, you don’t have to pay 5% on ALL your earnings: (From the EULA) Licensees are not required to pay royalties on the first $3,000 in gross revenue per Product per quarter.
If Product revenue is less than $3,000 in a quarter, licensee is not required to report revenue for that Product.
Financial winnings from awards are exempt from royalties.