You’re right about the two children. I’ve seen in on Alaska’s marketing materials, though the actual T&Cs say just one individual. Where did you see that gifted passes can’t bring in two children?

Alaska Lounge Passes: The Primary Cardholder will receive 2 Alaska Lounge passes credited to their Atmos™ Rewards Program account each calendar quarter for a total of 8 Alaska Lounge passes per year (every 12 months from account open date). To qualify for Alaska Lounge passes, the Primary Cardholder's card account must be open with active charging privileges. Quarterly allotments of Alaska Lounge passes will be credited on the first day of each calendar year quarter (January 1, April 1, July 1, October 1). Lounge passes for a new account will be credited to the Primary Cardholder's Atmos™ Rewards Program account within 30 days of account opening or upgrade. Lounge passes are valid through the end of the quarter in which they are issued. One Lounge Pass is valid for one individual for single travel day access to Alaska Lounge locations. Boarding pass must show a reservation for a same-day flight operated by Alaska Airlines, Hawaiian Airlines, a oneworld® member airline or an Alaska Airlines global partner departing from or arriving at the airport in which the Alaska Lounge is located. Benefit valid only at Alaska Lounges. Partner lounges are not included.