Grand Theft Auto V has opened an in-game casino where real money can be spent on gambling chips - but they cannot be converted back into cash.

Axar.az reports citing foreign media.

The new feature was launched as regulators grapple with whether in-game wagers should be treated as gambling.

In GTA Online, players can buy in-game "dollars" with real currency, and then convert their virtual dollars to gambling chips.

The game is rated for ages 18 and over, but remains popular among young teens.

The in-game currency can be used to acquire cars, weapons, and cosmetic items - and used to play slot machines, roulette, or poker.

Some players reported that while they could walk around the casino area, the gambling tables were blocked in their country where gambling is illegal.

Gamers had mixed reactions to the discovery that gambling chips can be purchased with real cash.

Popular British streamer Broughy1322, who was showcasing the new content on Twitch said: "They've done it, I can't believe they've done it," after finding that in-game dollars can be exchanged directly for chips.

"They've gone over the line of what they would, and it's a big problem that they allow you to buy chips with real money, frankly," he added later as viewers debated the system.

Ahead of the launch, it was not clear if such an exchange would be possible.

Gaming news site Kotaku speculated that chips would only be earned by playing the game - similar to the way it works in Rockstar's other recent online game, Red Dead, and in many other games. "This way, players can't spend real money or win fake money that is worth real cash in the casino," it wrote.