What is the ruling on a cultural competition whose questions are distributed via a CD, and which relies on information from the Qur’an and Sunnah, and in which prizes are awarded to the winners?

Cultural competitions are permissible if they increase a Muslim's understanding of their religion or provide permissible knowledge, and sharpen their intellect in lawful matters, provided that the prizes are donated by a benefactor with the aim of encouraging learning. However, if the prize provider intends financial profit, the competition becomes gambling, because participation depends on purchasing competition materials, and this is the forbidden maysir (gambling). Gambling is when a participant is not free from either gain or loss. For a competition to be lawful, its materials must be provided free of charge and the prize donated to the winner.