What is the meaning of "prize" linguistically and terminologically, and what is the legal basis in Islamic law for competition prizes?

Linguistically, a "prize" (جائزة) means a gift. Technically, it does not deviate from this meaning, and its ruling varies between being recommended (mandub), permissible (mubah), and forbidden (muharram). Examples include: the guest's prize, the ruler's prize, and the race prize. The evidence for this is the Prophet's (peace and blessings be upon him) horse racing and his giving a prize to the winner. It is given in legitimate competitions like horse racing and archery. It can be provided by the Imam (leader), a third party unrelated to the competitors, or by one of the competitors. If it comes from all competitors, some scholars stipulate the presence of a "muhallil" (a neutral third party who contributes to the prize and has a chance of winning) to avoid gambling.