All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon Prophet Mohammad and upon all his family and companions.

Scholars are unanimously agreed on the permissibility of offering and accepting a prize in races involving horses and camels, and in archery, whether the prize is provided by one of the competitors or by a third party. This is based on the saying of the Prophet, peace and blessings be upon him: "There should be no awards (for victory in a competition) except on arrows, camels or horses." [Narrated by Al-Tirmidhi, Al-Nasa'i, and Abu Dawud].

Therefore, a prize is only permissible for competitions involving horses, camels, and their equivalents, or involving arrowheads and their equivalents like shooting with modern weapons. According to the relied-upon position of the four schools of jurisprudence, based on the view of the esteemed Shafi'i scholars, it is not permissible to accept prizes for competitions in permissible games that do not serve as preparation for Jihad in the cause of Allah. Imam Sulaiman Al-Jamal, may Allah have mercy on him, stated: "Its condition – meaning a competition between two, for example – is that the subject of the contract is an instrument of warfare; because the purpose is preparation for it… such as animals with hooves like horses, mules, and donkeys; animals with padded feet like camels and elephants; and those with points like arrows, spears, and lances; and throwing stones by hand or sling. This excludes lifting them (a form of exercise), throwing them back and forth between competitors, and using catapults. It does not include [competitions in] bird [racing], wrestling, polo, shooting marbles, swimming, chess, guessing if the number in one's hand is odd or even, racing ships, or foot races with a prize, because these are not beneficial in war." [Hashiyat Al-Jamal 'ala Sharh Al-Minhaj, Vol. 5/P.281].

However, some scholars from the Maliki school of thought held the view that it is permissible to have competitions with a prize in areas other than those specified in the prophetic texts, provided the one offering the prize is not one of the competitors. Imam Al-Kharashi, may Allah have mercy on him, said: "His statement: 'It is permissible in other than that (i.e., what is mentioned in the Sunnah) without a prize,' – Al-Zanati reported two opinions regarding permissibility and dislike, concerning someone who voluntarily offers something for wrestlers, or for runners in a foot race, or for those racing on their donkeys, or other similar activities for which there is no specific Sunnah." [Sharh Mukhtasar Khalil, Vol.3/P.156].

That being said, even if one adopts the opinion that does not deem competitions and games not mentioned in the Sunnah as prohibited, based on the view of some Maliki scholars, this must be regulated by a set of conditions, which are:

First: That these matches and competitions do not involve forbidden gambling, such as the bets placed in many sports matches.

Second: That the sports match does not contain any religious prohibition; such as looking at what is unlawful, exposing private parts, or mixing between men and women.

Third: That watching or participating does not distract from religious and worldly obligations; such as prayers, obeying parents, maintaining family ties, and so forth.

Fourth: That it is not a cause for harm or for stirring up discord and disputes among people.

In conclusion, it is permissible to offer and accept a prize in races for horses, camels, and their equivalents, and in archery and its equivalents, if the prize is from one of the competitors or from a third party. Some scholars from the Maliki school of thought held the view that competitions with a prize in areas other than the three mentioned are not prohibited, if the one offering the prize is not one of the competitors, provided the aforementioned conditions are observed. And Allah the Most High knows best.