It is only permissible to accept payment or a prize in the case of horse races, camel races and archery contests, and things that come under the same ruling, such as competitions in memorising the Qur'an, hadith and fiqh, and other things which help to support and spread the religion, because of the report narrated by Abu Dawud (2574), at-Tirmidhi (1700 – and he classed it as hasan), and Ibn Majah (2878) from Abu Hurayrah (may Allah be pleased with him), according to which the Prophet (blessings and peace of Allah be upon him) said: "There should be no prizes for racing except archery contests and races with camels and horses. Ibn al-Athir said in an-Nihayah (2/844): It is what is allocated of money as a pledge for the race. End quote. It says in Fatawa al-Lajnah ad-Da'imah (15/239): Question: What is the ruling on betting and what is called "halal betting"? What is the ruling if it is done by one party only, such as if someone says: If this thing happens, then I owe you an invitation to a meal, for example? May Allah reward you with good. Is it halal or haram? What this refers to is gambling, such as saying: If such and such happens, then I owe you such and such, and if such and such happens, then you owe me such and such, or if So and so comes, you owe me such and such, but if he does not come, I owe you such and such, or if what you have is a stone or gold – or whatever the issue that they are arguing about and betting on is. So if someone says: Whoever learns such and such of the Qur'an or of the Sunnah or of a particular book will have such and such a prize, this comes under the heading of payment, and it comes under the heading of hiring. And Allah knows best.
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