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In my country, there are several Islamic Facebook groups (not fraudulent). Every 2 months or each month, they arrange Islamic quizzes (aqidaah, serah, quran etc.). What they do is set a certain amount of participation fee and give a handful of money as prizes to the participants (first, second, or first 20, 50, or even 100 participants).

My question is, Is this competition haram? Is it gambling? I'm confused about its ruling in Islam; please share knowledge on that matter.

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If the quiz/competition benefits Islam i.e. by speard of Islam and Jihad. It is permissible to participate in them as

The Prophet said:

“There should be no (money) prizes for competitions except in archery, camel-racing and horse-racing.”

Narrated by at-Tirmidhi, 1700; Abu Dawood, 2574. Classed as saheeh by al-Albaani.

Scholars speculate that the Prophet mentioned these three because they are skills used in jihad for the sake of Allaah.

Some scholars added to these three everything that helps with jihad and spreading Islam, such as competitions in reciting Qur’aan or in knowledge of hadeeth and fiqh, so it is permissible to award prizes for these. ~ Islamqa

On another occasion Islamqa quotes :

Is it permissible to compete for prizes in memorising Qur’an, hadeeth, fiqh and other beneficial sciences, and getting questions right? The companions of Maalik, Ahmad and ash-Shaafa‘i disallowed it, but the companions of Abu Haneefah and our shaykh regarded it as permissible; Ibn ‘Abd al-Barr also narrated that from ash-Shaafa‘i, and prizes are more appropriate in wrestling and swimming. If it is regarded as permissible to compete in these fields for prizes, then it is more appropriate that it should be permissible to compete in knowledge.

This is similar to the case when (Abu Bakr) as-Siddeeq made a bet with the disbelievers of Quraysh regarding the truth of what he told them. We have stated previously that there is no shar‘i evidence to suggest that this has been abrogated, and Abu Bakr took the wager from them after gambling had been prohibited. Religion is established by means of proof and jihad; if betting was permissible with regard to tools of jihad, then it is more appropriate that it should be permissible with regard to knowledge. This view is the correct one.

End quote from al-Faroosiyyah (p. 318)

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