While redeeming Free Play for a friend (with their consent) may run contrary to the rules of a slot club, I doubt there's anything illegal about it.
Keep the activity within reason and I doubt you'll draw unwanted attention.
FWIW, there's been discussion of a group of individuals who've managed to register multiple new accounts using false id's and have redeemed FSP on subsequent visits. It's suggested that it was the use of fraudulent id's that warranted the attention of outside authorities.
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