that is, a third participant who makes the competition lawful. If he wins, he takes both of their stakes; but if the other two defeat him, nothing is taken from him. This removes the case from the form of gambling and games of chance. However, this answer is very weak.
First, because the hadith reported concerning it is weak (1), so it cannot serve as proof.
Second, because this is a legal stratagem. If it is permissible to take the stake without such a participant, then there is no need for him; but if it is prohibited, then introducing him is done in order to make the prohibited permissible. Legal stratagems are forbidden in the Sacred Law.
Third, because this third participant will now take part with them in the competition, yet in every case he either gains or suffers no loss. Thus, he shares with them in the act but differs from them in the ruling and outcome. This is not just, whereas competitions are founded upon fairness. If this participant wins, he takes both stakes from the two contestants; but if he is defeated, he takes nothing and nothing is taken from him. This is contrary to fairness. So how can he participate with them in the activity, then differ from them in its outcome and result?!
The correct view, then, is that the presence of such a participant is not a condition, that this case is an exception, and that it contains a benefit that outweighs its harm. The benefit is