The first time is whoever wins, then go back to the areana and intentionally lose to one of your. The Fort Smith lady will remove TWO collars. Yes, just take gareth back to hideout and speak with leya with any character that still using the collar she will then remove everyones collars. Your companion's collars you can get removed by talking to Dwarf named Leya in the sanctuary of Amadia. If you did not manage to save Gareth you have to possess Broken Source Collar Amulet, which can be found next to his. After completing this quest return to Leya. At this point, head out of the arena and look for Nebora, a woman near several Blacksmith tools in the Fort Joy area. Speak to Nebora that will reveal to be able to remove the collar but also that don't consider you worth of the service
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After your conversation, Nebora will remove the Source Collar from your personal character. Speak to Nebora, and confirm that you're the Fort Joy arena champion. Once you're outside again, pass through the Camp Kitchen and locate Nebora's tent down the steps just beyond the Shrine.