In Alik'r there is a quest to win a race using a lizard. With the option of 3 lizards, 1 free 2 for gold. Also with the option to buy a treat that is supposed to boost your lizard.
I have tried the free lizard, free lizard plus treat. Bought one of the lizards and a treat for him. I have lost them all with the same result each time. I have tried racing during the day and night, since she says the sand might be to hot, same result.
I am hesitant to try the 3rd lizard as I have already spent between 1-2k gold trying to do this quest. I can't seem to find anything anywhere about this dumb quest.
Edit:
Bought the third lizard and still lost, I have given up till I find a solid answer.
Best Answer
I recently did this quest and this will help:
1. Don't buy the "normal" lizard
There is a second merchant who will sell a lizard to you. It's location is a bit south of the "normal" vendor.
2. This lizard will still lose. Feed it!
Now head back to the "normal vendor", who will then feed your lizard to be superior for some additional money.
3. Win that race!
Now place your lizard in the box and look how it will win. After that you can claim your prize money, which will unfortunatelly be much less than you expensed. But hey, at least you have finished that quest!