´It was narrated from Abu Hurairah that the Messenger of Allah (ﷺ) said:` “Whoever enters a horse (in a race) between two other horses, not knowing whether it will win, that is not gambling. But whoever enters a horse (in race) between two other horses, certain that it will win, that is gambling.”
Related hadith on this topic
Explanation & Benefits
Shaykh Umar Farooq Saeedi
Benefits and Issues:
In order to understand the ahadith of this chapter, a few matters should be known:
➊
If the commander of the mujahideen or any other person arranges a race or similar competition between two horsemen and gives a prize or reward to the winner, then this is permissible.
➋
However, if two individuals (or parties) mutually agree that the loser will give such-and-such prize to the winner, then this is gambling and is impermissible.
➌
If a third party joins these two competitors, whose winning or losing is not certain, but due to being equal in ability to them, any outcome is possible—such that if he wins, both of them will give him a prize, and if he loses, nothing is required of him—then this situation is permissible.
Since his joining the two makes their giving and receiving of prizes permissible, he is called a muhallil.
Muhallil means: one who makes (the transaction) lawful (from gambling).
Source: Sunan Abu Dawood – Commentary by Shaykh Umar Farooq Saeedi, Page: 2579