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If people have the loyalty discount for owning Dead Island and/or Dead Island: Riptide, they would be able to buy many gift copies of the definitive editions and resell them to those who do not have the loyalty discount. Gifting is probably disabled for people who have the loyalty discount to stop that from happening.
Can you buy a Steam Wallet code and give the code to your friend?
Ahhh, that's too bad. I hope that either your friend finds a way to get the money on his account so he can buy it, or the restriction on buying it as a gift is lifted soon.