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I am developing a game that has users playing live quizzes against each other for cash prizes. You can book to play a live quiz for a small fee. You have a chance of winning a cash prize if you perform well on the quiz.

The quizzes include general knowledge questions with widely accepted and proveable answers. So the questions do not involve luck.

But my app is getting rejected from the Play Store on claims that it violates the Gambling policy. How does the gambling policy apply to a quiz app?

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The gambling policy to which the question links says that "gambling" under that policy includes:

games of skill that offer prizes of cash or other value.

From the description in the question, this exactly fits the app in question, so it ought to be rejected under the policy unless it comp[lies with the rules for an exception, which the question doesn't say it does.

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