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According to Bulbapedia,

Prize money is the money that a Trainer pays out at the end of a battle.

So we know that the money comes directly from the trainer that just lost, and not some third-party committee or sponsor.

But how is this done?

It can be easy seeing the random trainers who challenge you along the way wanting to wager and then, after admitting defeat, sticking to their word and handing over their hard-earned pokebucks. Then there are the likes of Team Rocket and Giovanni, who also give money once they lose. This doesn't seem like something people in a criminal organization would willingly do.

From this it appears that trainers have no say in whether or not they cough up the dough after losing, but I can't find anything on how exactly the funds are transferred from loser to winner.

So how do Pokemon trainers receive their winnings?

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    At the risk of being "that guy", it's just a game mechanic and one that doesn't exist in the anime or manga – Valorum Jun 7 '18 at 18:11
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    @thatguy Okay. Then answer it from the games. – DCOPTimDowd Jun 7 '18 at 18:12
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    I remember in the game that when all your pokemon faint, YOU "black out". I assume that the custom is in Pokemon world to go through the wallets of the unconscious before the police arrive. – Clint Eastwood Jun 7 '18 at 18:51
  • @ClintEastwood Why would the police arrive to a sanctioned-and-totally-legal cock/dog/lizard fight? – DCOPTimDowd Jun 7 '18 at 18:55
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    It is probably illegal but the local police turn a blind eye to it until you have a passed out kid on the street. – Clint Eastwood Jun 7 '18 at 20:04
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The most logical guess is it's handed automatically by the Pokedex. It is fair to assume that the Pokedex (in addition to Bill's computer network links Pokedexes (Pokedeces?) to a central system to keep track of Pokemon captured, battles fought, the players' win/loss ratio, etc. These statistics are available in various versions of the game, so one must assume in the universe of the game, it's available as well. Prize money awarded after a battle may not come from the player themselves, but through the system automatically. You lose a little money (varies by game) if you lose a battle; that may be deducted automatically for you.

(BTW, do NOT Google "lose a Pokemon battle" if Safe Search is turned off...)

The reward phase of a game is always hard to explain. In RPGs with a more fantasy bent, monsters inexplicably carry money and human weapons upon their person. The assumption is the treasure is matted in their fur or scales, and one must either search them for it, or it's been accidentally dropped as they run away.

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    I might be mis-remembering, but for the original games, weren't the Pokedexes something that only a few people had, such as Red and Gary? After all, they were made by Professor Oak, and I don't think that would lend itself to being mass-produced. It would certainly be odd for every Team Rocket Grunt to have one, at the very least. – GuardianAnubite Jun 7 '18 at 21:26
  • @GuardianAnubite That's what I was thinking, and I believe even the recent games don't have widespread use of Pokedexes – DCOPTimDowd Jun 8 '18 at 17:41
  • Also, the warning in the answer is correct. Wow. What an unexpected way to find NSFW content. – DCOPTimDowd Jun 8 '18 at 17:43

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