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Open Source software is software with source code that anyone can inspect, modify or enhance. Programs released under this license can be used at no cost for both personal and commercial purposes. There are many different open source licenses but they all must comply with the Open Source Definition - in brief: the software can be freely used, modified and shared.
This license is commonly used for video games and it allows users to download and play the game for free. Basically, a product is offered Free to Play (Freemium) and the user can decide if he wants to pay the money (Premium) for additional features, services, virtual or physical goods that expand the functionality of the game. In some cases, ads may be show to the users.
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