It is narrated from Sayyiduna Abu Hurairah, may Allah be pleased with him, that the Noble Prophet, peace and blessings be upon him, said: If a person enters a horse between two competing horses, while he is not certain of winning, then there is no harm in doing so. But if someone puts his horse between two horses while he is certain of winning, then this will be considered gambling.
Hadith Takhrij«اسناده ضعيف، سفيان بن حسين ضعيف في الزھري، ثقة في غيره، أخرجه ابوداود: 2579، وابن ماجه: 2876، (انظر مسند أحمد ترقيم الرسالة: 10557 ترقیم بيت الأفكار الدولية: 10564»
Brief Explanation
Benefits: Consider the following points: (1) If a leader (amir) or any other person arranges a race or similar competition between two horsemen and gives a prize to the winner, then this is permissible. (2) If two individuals or parties mutually agree that the loser will give a certain prize to the winner, then this is gambling and is impermissible. (3) If a third party joins these two competitors, whose winning or losing is uncertain, and due to being equal in skill any outcome is possible, and if upon his winning, both of the original competitors give him a prize, and upon his losing, nothing is required of him, then this situation is permissible.