If I fail to provide the promised gift, will I be banned?

That's a tough situation, because it affects your rating and he can mark the gift as 'not given,' giving you a bad rep. But I don't really know what would happen on the first 'offense.' And he's being uncompromising, seems like he's playing in bad faith...

How is the winner playing in bad faith? He obviously isn't getting prize he won...And from the looks of it (albeit, there isn't much info given, really), the ONLY alternative the giveaway creator/OP offered was a paypal payment. How about offering the winner a different game via steam gift code?

I'd assume that you'd be banned, yes.

You could gift him the games that come with the bundle. It will cost a bit more, though.

If it's an honest mistake, don't worry about it. You might be stuck with negative feedback if you're unable to work something out with the winner, but aside from that, you're fine.

I've got a few extra ones I've been holding onto until they are no longer so easy to get, you can have one of them if you would like to give it to your winning dude, it has the #2 bundle as well. About to hit the sack so leave a response here with a good way to contact you if you want one and when I wake up I'll send it your way.

You should have checked it first.

BAN HAMMER!!!!!!!!!!!!

no, your situation is fine...but some should be banned..i mean i won a dirt 3 giveaway, but the OP said "he doesn't have the game"..when i check his profile he was playing dirt 3 -_-

Hm, I have a single spare code for the bundle, if you'd like. You didn't do it purposely, but the winner deserves something.