Question Summary:
RE : Fatwa 18121 One scenario came to my mind while reading the answer and I wish to ask you. What if it is explicitly mentioned that the fee charged is for the stuff required and…

Question Detail:

RE : Fatwa 18121 One scenario came to my mind while reading the answer and I wish to ask you. What if it is explicitly mentioned that the fee charged is for the stuff required and will be used for buying the board and the rest of the things required, while the prize money will come from a totally different source e.g the sponsor. Would it still be haram?

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
If there are costs incurred for the tournament, then the participants may split the cost amongst themselves.  The total amount collected should equal the costs incurred, not more.  Also, if the cost includes purchase of materials, then all participating members will be shared owners in those materials (such as the board, for example) according to the percentage of their contribution. 
If any money remains after paying all the expenses, then the participants may either take the money back according to the percentage of their contribution or they may agree to donate it.  However, they cannot stipulate the extra money for the winner of the tournament.  If, without any previous agreement and/or obligation, whether written or understood, the participants decide to gift the winner their portions of the left over money, then they may do so. 
Furthermore, if an independent third-party, which has no connection with the fees charged to the participants, offers the winner a prize, then this would be a gift from their end and, thus, permissible for the winner to accept.
And Allah knows best
Wassalaamu `alaykum
Ml. Abrar Mirza,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah