It is not permissible to offer prizes for any kind of games or contests except in archery, horse racing, and camel racing, or anything that helps in jihad. However, earning money from video games is permissible under certain conditions:

1. The games must not involve haram elements such as gambling, inappropriate content, or promoting un-Islamic values.
2. The earning methods must be lawful and ethical.

And Allah knows best.

Sources:

• Daruliftaa Birmingham
• IslamQA