And the rationale behind this position is that the one who puts up the stake never gets it back under any circumstance. This is one of the two reports from Malik (1); Abu Bakr al-Turtushi said, “It is his well-known view.” Abu ʿUmar ibn ʿAbd al-Barr (2) likewise stated, “Rabiʿah, Malik, and al-Awzaʿi are agreed that whatever is staked in a contest does not revert to the one who staked it in any (3) circumstance.” That is, according to them the stake can never return to its donor. He further said, “Al-Shafiʿi, Abu Hanifah, al-Thawri, and others disagreed with them.”
Accordingly, if the stake-provider himself wins, his stake becomes a windfall for those present, whether or not that was stipulated.
There is, however, a second report from Malik, narrated by Ibn Wahb: if it is stipulated that the stake go to whoever wins, the arrangement is permissible, whether the winner is the stake-provider or not (4). Under this report it is not a windfall for the onlookers; rather, it belongs to the victor. If, under this same report, it is stipulated that the stake be a windfall for those present (5);