Yes we went last year on the Panama Canal cruise. It was an adult costume party and it was held up on the pool deck (actually the contest was on the pool deck and the ball, if I can remember correctly, was in the atrium). There were different categories like best original costume, group costume, etc. I was in a group of Maleficents (there were about 7 of them) and won a Haunted Mansion DVD (as did the other runner ups). It was all a ton of fun. On a Halloween cruise a few years ago it was held in Wavebands.
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In the context of a
Disney Cruise it is basically an adult costume party. There were some awesome costumes. One of the best we saw was the Flintstones family (not Disney but awesome anyway).
Our cruise was over actual Halloween and I don't know if that was the reason or because it was a specialty cruise but it was VERY well attended with a huge amount of guests dressing up.
MJ