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You cant gift a game to someone who already owns it.
The game is linked to the OP's Steam account so if the OP already has it he can't be gifted the game again. This is what it looks like if I try to gift a game to someone who already has it:
http://i.imgur.com/5VoQ1TS.jpg
The option to purchase the game as a gift won't be grayed out, as Steam doesn't yet know who you are gifting the game to when you click that button. The person you ultimately send it to may be unable to redeem it, but it won't stop you from gifting it.
It appears we were thinking of different screens.
This guy is correct and shows proof. It does grey out users who already own the game.
We are referring to different things. I am referring to the "Purchase as gift" button, they are referring to the screen in which the gift is sent. My edit reflects this.
http://i.imgur.com/QjXuWeg.png
Plus all the people who were complaining earlier that they can't accept CS:GO or some other VAC-enabled game to their inventory because the button wasn't working.
So answer to your question. No you cannot gift a game if the user already owns it. Vac secure games cannot be gifted. If you gift someone a game and they get banned you cannot gift that game ever again.
Read: https://support.steampowered.com/kb_article.php?ref=1327-WUJX-5722
Read: https://support.steampowered.com/kb_article.php?p_faqid=549
I'm just spitballing here, but did you receive the gift via email? That might explain how you were gifted a game you already own.
I just looked through my post history for a bit. A month ago someone posted this:
https://i.gyazo.com/7c1faf24ca766f1e48a19032be1df74f.gif
He already has CS:GO but someone still sent it to him as a gift (but he was unable to accept it because VAC-enabled games can't be stored in your inventory, which is why he posted the .gif for help), so I guess it is a recent change after all.
https://i.imgur.com/nAWqkWX.png
Friend sent me his gift link by accident. According to what everyone has said, no one really knows what would happen if i accept this gift.
Need to give him the gift instead, but that's not really a button. Declining should just give the product back to the seller, but that's iffy since it won't really give him a refund unless he files a claim.