Arguably, they'll be happier with the video game than with a tank of gas, which you've ensured they'll choose by not giving them the cash
Edit to add: kids often don't have bank accounts, i mostly received gift cards as a child, from relatives who wouldn't want to mail cash and couldn't give me cash in person. On a dark note, giving a kid a gift card to a toy store makes it harder for the parents to steal it for themselves.
The whole practice originates from "gift certificates" where you'd maybe go to your favorite spa and get a gift certificate to give someone, so that the spa treatment is the gift you're giving, but the recipient redeems it whenever they want. That just got abstracted to non-service gifts as well, with the same idea ("treat yourself to a new video game, whichever and whenever you feel like it" -- that's the gift, facilitated by the card)
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Arguably, they'll be happier with the video game than with a tank of gas, which you've ensured they'll choose by not giving them the cash
Edit to add: kids often don't have bank accounts, i mostly received gift cards as a child, from relatives who wouldn't want to mail cash and couldn't give me cash in person. On a dark note, giving a kid a gift card to a toy store makes it harder for the parents to steal it for themselves.
The whole practice originates from "gift certificates" where you'd maybe go to your favorite spa and get a gift certificate to give someone, so that the spa treatment is the gift you're giving, but the recipient redeems it whenever they want. That just got abstracted to non-service gifts as well, with the same idea ("treat yourself to a new video game, whichever and whenever you feel like it" -- that's the gift, facilitated by the card)