What is the ruling on participating in free internet competitions that rely on accumulating points by selecting virtual players, and winning in-kind prizes based on the actual performance of the players?

Islam has permitted recreation and amusement, with legitimate controls. These are that it should not distract from the remembrance of Allah and prayer, that it should not be accompanied by forbidden things like gambling and music, and that it should not lead to conflict. It is preferable for recreation to be in something beneficial, such as mental or physical exercise. The game mentioned is permissible if it is free from these prohibitions, and it is permissible to receive a prize from it, while being careful that it does not distract a person from their duties or cause them to neglect their rights.