All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.
We have previously underlined the conditions for the permissibility of playing electronic games; please refer to Fatwa 292030. As long as it is permissible to play a given electronic game, it is permissible to pay the players in-game virtual salaries. It should be noted that the subject matter of the question has nothing to do with the Hadeeth referred to in the question, which reads, “There shall be no stake (or wager) except in (racing) camels, or (racing) horses, or shooting arrows.” [At-Tirmithi and others]
This Hadeeth indicates the permissibility of setting a prize or wager on a competition. It is worth noting that some scholars considered foot-racing and anything else that involves preparation of military strength or that has a religious advantage, to be an extension of these three categories mentioned in the Hadeeth. Ibn Al-Qayyim said in his book Al-Furoosiyyah (Horsemanship):
“Allaah The Exalted and His Prophet, sallallaahu ‘alayhi wa sallam, have permitted competition in archery and in horse and camel racing in order to encourage Muslims to learn horsemanship and to be prepared for Jihaad. So competitions and initiatives for knowledge and evidence are permissible with even greater reason, because by them, hearts are opened, Islam is strengthened and its rituals prevail.”
Allaah Knows best.