System and method for awarding rewards to players of gaming machines via automated prize redemption centers

A method of awarding a prize to a player of a gaming machine which is configured to present at least one wagering game, wherein said prize is awarded separate from any winnings awarded by said gaming machine for a winning wagering game outcome, comprising the steps of:

• comparing activity information obtained from said gaming machine to criteria associated with one or more stored prize events;
• when criteria for one of said prize events has been met, issuing, from said gaming machine, a media from a media dispenser of said gaming machine to said player;
• storing information regarding said media and an awarded prize;
• reading, by a media reader of an automated prize redemption device configured to dispense a prize to the player, the automated prize redemption device having a housing which defines a prize storage area, a controller, a media reader and a prize dispenser which is controlled by said controller and configured to deliver said prize from said prize storage area to a dispensing area;
• comparing said information associated with said media against said stored information to determine if said media is valid;
• and
• when said media is validated, causing said controller of said automated prize redemption device to cause said prize dispenser to dispense the awarded prize from said prize storage area to said player at said dispensing area.