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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?

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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.

That's fraud.

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?

The fraud is circumventing restrictions on purchasing gambling credits by ostensibly purchasing a CS2 skin at the time of the financial transaction.

Legal what-ifs have a much lower bar than a C++ if clause or the assembly conditional it compiles to.

How is it different than if I buy a TV and sell it on Ebay and use the funds to gamble?

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.

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