Who is permitted to provide the stake money (the prize) in a permissible wagering competition?
General Chapter
Al-Mughni
Book of Racing and Archery
Primary text
If the stake money comes from a third party other than the competitors, it is permissible if provided by the Imam (ruler) from his personal wealth or from the public treasury (Bait al-Mal), as this serves the benefit of teaching warfare and aiding Muslims. It is also permissible for a non-Imam to offer the stake money from his own wealth. This view is held by Abu Hanifa and Al-Shafi'i.
Supporting text
Malik holds that only the Imam may offer the stake money because these skills pertain to Jihad, a matter entrusted to the ruler's authority.