What is the ruling on creating an electronic game for competition with money paid by participants, where the winner receives most of it, and the game owner takes a portion of it?

Competitions where participants contribute a fee, and the winner takes the prize while the losers bear the cost, are forbidden by Islamic law. They fall under the category of maysir (gambling) and qimar (gambling), which Allah has commanded us to avoid. Allah Almighty says: "O you who have believed, indeed intoxicants, gambling, [sacrificing on] stone altars [to other than Allah], and divining arrows are but defilement from the work of Satan, so avoid it that you may be successful."

The jurists have unanimously agreed on the prohibition of maysir (gambling), and the Shafi'is consider it a major sin. It has been reported in the hadith: "There is no prize money except for archery, or hoof [racing], or paw [racing]" meaning that remuneration and reward are only permissible in horse and camel racing, and archery, because these activities are considered preparations for fighting the enemy and encourage Jihad. As for pigeon racing, pigeon poetry, or similar activities that are not considered preparations for war, taking compensation for them is prohibited gambling and is not permissible. Therefore, it is not permissible to create such a game.