The Ruling on Competitions That Require Paying an Entry Fee

Question:
He says: Honorable Shaykh, may Allah grant you success. In some places, one pays a sum, such as ten riyals, to enter a competition. If one wins, one receives a prize worth three hundred riyals, and if one loses, one is given a prize worth only two riyals. What is the ruling on this competition?

Answer:
This is gambling. This is gambling: you pay, and you may end up with more. This is gambling. Yes. And prizes, as you know, are not permissible except in the manner specified by the Messenger (peace and blessings be upon him). They are not permissible, because it is consuming wealth unjustly. Yes. But if you are paying this, it is even worse. This is gambling: you pay, and you are either a winner or a loser. This is gambling. Yes.