Esports Prize Pools and Shariah: Can Entry Fees Fund the Prize? (Malaysia, 2026)
By KITAMEN Esports Solutions • June 2026
Disclaimer: This article shares publicly available scholarly references for general information only. It is not a fatwa, and not religious or legal advice. Rulings differ between scholars and the schools of Islamic law. Always consult a qualified Islamic scholar, your state mufti, or JAKIM before deciding on your own event.
Executive Summary
- Across the references reviewed, the dividing line is the source of the prize, not the entry fee by itself.
- When all players pay and the pooled fees become the prize, scholars classify it as gambling (al-maisir); a prize from a sponsor or non-participant is treated differently.
- This is an information resource only. It is not a fatwa, and you should consult a qualified scholar, your state mufti, or JAKIM.
Deep Dive: It Is About Where the Prize Money Comes From
The most consistent principle across the rulings reviewed is that an entry fee, on its own, is not the problem; the problem is the prize being funded by the competitors paying in. The Islamweb Fatwa Center (Fatwa #142039) states that entry fees are impermissible when “the fees that are paid are for the prize or for part of it and it is the participants in the game that pay it,” citing the principle of Ibn Hajar al-Haytami. The same fatwa holds it permissible “if the entry fees are for the services that those who run the game offer for the participants, and the prize is offered by a volunteer who is not participating in the game, or that it is offered by some participants only.”
In other words, scholars distinguish a fee paid for organising and running the event from a stake pooled to create the winnings. The first can be acceptable; the second is the one flagged as gambling.
The Four Funding Models
The Mufti of the Federal Territories, in Al-Kafi li al-Fatawi #966 (“Adakah Wang Penyertaan Sesuatu Pertandingan Sebagai Satu Perjudian”), applies the four competition models described by Sheikh Mustafa al-Bugha in al-Fiqh al-Manhaji ʿala Madhhab al-Imam al-Shafiʿi (8/158). Only the third is identified as gambling.
| Model | Who funds the prize | Ruling (as cited) |
|---|---|---|
| 1 | The government or an authority | Permissible |
| 2 | One party or an external sponsor (not the competitors) | Permissible |
| 3 | All participants pay, and the pooled fees become the prize | Gambling (al-maisir) — not permissible |
| 4 | Competitors stake, but a muhallil (a non-paying entrant who can still win) joins | Permissible |
The ruling grounds this in the Qur’an (al-Ma’idah 5:90 and al-Baqarah 2:219) and the hadith on the Prophet’s horse racing reported by Ibn Umar (al-Bukhari, Muslim), and references Sheikh Yusuf al-Qaradawi.
Local Insight: Malaysia’s Official Position
Malaysia has specific institutional guidance. The Muzakarah Jawatankuasa Fatwa Kebangsaan (National Fatwa Committee), in its 64th meeting on 27 July 2004, ruled that paid SMS quiz competitions contain elements of exploitation, ambiguity (gharar), gambling and chance, and are therefore haram, with the principle that prizes cannot be drawn from the pool of participant money. For organisers, JAKIM publishes the official Garis Panduan Peraduan Berasaskan Hadiah (Guidelines for Prize-Based Competitions, 2013).
On gaming specifically, the Mufti of the Federal Territories has also addressed in-game spending in Irsyad al-Fatwa #626, which examines the gambling concern around PUBG “Unknown Cash (UC)” mechanics — a useful reference for organisers thinking about loot-box or chance-based features alongside prize money.
A Stricter View, for Balance
Not every scholar treats the funding source as decisive. IslamQA (Sheikh Muhammad Salih al-Munajjid, Fatwa #147826) holds the narrower position that monetary prizes are restricted to the three categories named in the hadith, “There should be no prizes for competitions except in archery, camel-racing and horse-racing” (at-Tirmidhi 1700; Abu Dawud 2574), citing al-Nawawi (Rawdat at-Talibin 11/225) and Ibn Taymiyyah (Majmuʿ al-Fatawa 32/223). On this view, cash prizes for video games may be impermissible regardless of who funds them. We present both positions so readers can take the question to a scholar with the full picture.
Sources at a Glance
| Reference | Issuing authority | Key point (as cited) |
|---|---|---|
| Al-Kafi li al-Fatawi #966 | Mufti of the Federal Territories | Pooled participant fees as the prize = al-maisir; four-model framework |
| Fatwa #142039 | Islamweb Fatwa Center | Fees for services plus a prize from a non-participant can be permissible |
| Ruling, 27 July 2004 | Muzakarah Jawatankuasa Fatwa Kebangsaan | Paid contests drawing prizes from participant money = gambling |
| Garis Panduan (2013) | JAKIM | National guideline for prize-based competitions |
| Fatwa #147826 | IslamQA (Sheikh M. S. al-Munajjid) | Stricter view: cash prizes limited to three hadith categories |
Frequently Asked Questions
Is it gambling if entry fees are pooled to fund the prize?
According to the Mufti of the Federal Territories (Al-Kafi li al-Fatawi #966) and the Islamweb Fatwa Center (Fatwa #142039), when all participants pay and the pooled fees themselves become the prize, that structure is classified as gambling (al-maisir) and is not permissible. Both note that a prize funded by a non-participant is treated differently. This is general information; consult a qualified scholar.
Can an esports tournament with entry fees ever be permissible?
Per the cited rulings, commonly yes when the entry fee is payment for running the event (operations and services) and the prize is funded by a sponsor, the organizer, or another non-participant rather than from the pooled fees. Scholars differ on the details, so verify with a mufti or scholar for your specific case.
What do Malaysia official religious authorities say?
The Muzakarah Jawatankuasa Fatwa Kebangsaan (64th meeting, 27 July 2004) ruled that paid SMS-style competitions which draw prizes from participant money contain gambling elements and are haram. JAKIM also publishes the Garis Panduan Peraduan Berasaskan Hadiah (2013) for prize-based competitions. Refer to JAKIM or your state mufti for an authoritative ruling.
What is a muhallil in this context?
In classical fiqh, a muhallil is a third entrant who does not pay a stake but can still win, introduced so a staked competition is not purely the competitors gambling among themselves. The Mufti of the Federal Territories (Al-Kafi #966) lists it as one of the permissible models.
Do all scholars allow cash prizes for video games?
No. A stricter view, for example from IslamQA (Sheikh Muhammad Salih al-Munajjid), limits monetary prizes to the three categories named in a hadith (archery, camel-racing, and horse-racing), so some scholars consider cash prizes for video games impermissible regardless of funding. Opinions vary; consult a scholar.
Call to Action
This page is a starting point for research, not a ruling. For a decision on your specific tournament, consult a qualified Islamic scholar, your state mufti, or JAKIM. For general esports event questions, you can contact KITAMEN.
Disclaimer: This article shares publicly available scholarly references for general information only. It is not a fatwa, and not religious or legal advice. Rulings differ between scholars and the schools of Islamic law. Always consult a qualified Islamic scholar, your state mufti, or JAKIM before deciding on your own event.
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Versi Bahasa Melayu
Artikel ini berkongsi rujukan ilmiah untuk maklumat am sahaja dan bukan fatwa. Prinsip utama yang berulang dalam rujukan yang dikaji: yang menjadi isu bukan yuran penyertaan itu sendiri, tetapi sumber hadiah. Apabila semua peserta membayar dan yuran terkumpul itu dijadikan hadiah, ia dikira perjudian (al-maisir). Jika hadiah dibiayai oleh penaja, penganjur, atau pihak bukan peserta, hukumnya berbeza. Sentiasa rujuk kepada ulama bertauliah, mufti negeri, atau JAKIM.
