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If they propose, “Let us draw lots; whoever’s name is drawn must put up the stake,” or, “Let us draw lots; whoever’s name is drawn is to be awarded the stake,” the agreement is invalid, for compensation cannot be earned by the casting of lots; it is earned only by offering the stake and by striking the target.

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If two people engage in an archery match and say, “We shall each shoot so-and-so many arrows, and whichever one of us scores a hit, the stake is on the other,” that is valid. Likewise, if they are two teams who say, “We shall shoot, and whichever team hits, the stake is on the other,” that too is valid (1). In effect, the stake is being furnished by only one side, as though he had said: “If you beat me, you get ten; if I beat you, you owe ten,” and the other accepted.

Shaykh Abū Muḥammad—may Allah have mercy on him—said in al-Mughnī (2): “It is not permissible, because the stake is not earned merely by hitting the target.”

What he means is that a bare act of hitting does not by itself establish entitlement to the stake, and that is correct. Yet here the right is conferred (3) both by the hit and by their stipulation, “Whichever of us hits, the stake is on the other,” for that stipulation is itself a valid condition; consequently, the stake is earned (4) by virtue of the condition as well as the hit. Allah knows best.