A:
The question is a quite general, so we would like to mention something in the answer about the different types of racing and the rulings on each of them.
First:
Racing on horses and camels, training in arms and other apparatus of Jihad (fighting/striving in the Cause of Allah), such as planes, tanks, and horsemanship, are Wajib (obligatory) or Mustahab (desirable), according to the need of Muslims for Jihad to defend their property or religion, or to facilitate the spread of Islam. Anyone who undertakes these activities or helps others to do so by their ideas, skills, or money, will be rewarded.
Second:
It is permissible to receive the prizes that are given to the winners of a race, if they are given by the ruler or his deputy, or if they are donated by someone other than the competitors themselves. Anyone other than a competitor who offers a prize will be rewarded, if they do it for the sake of Allah. Allah (Exalted be He) says,
And make ready against them all you can of power, including steeds of war (tanks, planes, missiles, artillery) to threaten the enemy of Allâh and your enemy, and others besides whom, you may not know but whom Allâh does know. And whatever you shall spend in the Cause of Allâh shall be repaid unto you, and you shall not be treated unjustly.
(Part No. 15; Page No. 172) The Prophet (peace be upon him) said,
Competitions are allowed only in three (activities): Shooting arrows, camel racing or horse racing.
(Related by
Ahmad,
Abu Dawud,
Al-Nasa'y and
Al-Tirmidhy, who graded it as Hasan [a Hadith whose chain of narration contains a narrator with weak exactitude, but is free from eccentricity or blemish], while it was graded as Sahih [a Hadith that has been transmitted by people known for their uprightness and exactitude; free from eccentricity and blemish] by
Ibn Al-Qattan and
Ibn Hibban)
If the prizes are given by one of the competitors from the goodness of their heart to be given to the winner, this is permissible, as there is no gambling in it. But if the prizes are for some among those who buy tickets just to come and watch the race, this is not permissible, as it is a gamble between those who come to watch the competitors. However, if the prizes are donated by the ruler or a benevolent person and they are given as mementos to those who come to watch the race for nothing in return, there is no wrong in this, since the aim of holding and attending the race is fulfilled, and it is Shar‘y (Islamically lawful). May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.