First off, money should flow toward the writer, the one who has produced by creativity and effort the work of fiction.
Second, some legitimate contests do have entry fees, but most contests that ask for money may be nothing more than scams.
One way to distinguish is by what the contest says they will do with your entry, and how large the prize(s) is(are).
Stay away from publications that claim all of the rights to all entries.
I couldn't find anything on the website for this publisher that explains what rights are involved, so that would be something to ask them about before submitting anything.
Some publishers use contests instead of slush piles (and if they charge a fee, that helps them with costs). You just have to decide if the fee/investment is worth the chances of winning the prize(s).
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