Not necessarily, I mean if you buy a in-game item or currency that wouldn't be a cash advance so with this they could just say you bought $20 worth of credits and since you're buying credits that could be considered a good.
This is not gambling in the legal sense (gambling is not even allowed in my state, and yet here I am using Kalshi, in case you wanted to argue that), which is why my transaction was classified as Professional Services and, for the nth time, NOT a cash advance.
What if the site allows you to purchase a digital asset such as a CS2 skin which you can then immediately sell back to them at the same price you to get credits in your account to gamble?
If done at scale, you will get complaints/chargebacks that will trigger an audit followed by fines and/or account closure. Banks and underwriters have standard procedures in place to catch this.
I'm trying to understand which part exactly is fraud? If this site offered a legitimate marketplace for these items as well as gambling then in certain jurisdictions of course that could be illegal (due to the gambling aspect) but where does the fraud come in exactly?
Depending on circumstances, many activities under the same banner of analogy are actually fraud as well. I suggest talking to a lawyer before making any plans. Fraud is more about intent to circumvent, and chaining together individually-legal activities is the most common path to a fraud conviction.
