Fatawa of the Makkah Haram-1412-04b
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The questioner : May Allah reward the honorableThe Shaykh : Some public markets have become accustomed, on special occasions such as the month of Ramadan, to advertising large prizes, such as cars and the like, for buyers, on the condition that a lottery draw be held for these prizes. Some people differ regarding the ruling on these prizes, with some saying: "It is gambling," and others saying: "It is permissible." Everyone exerts their own effort; some exert effort based on what they were asked, and some exert effort based on what they have read. We ask you, may Allah reward you with good, to clarify the ruling on this and to clarify the ruling on those who transmit fatwas from books and other sources, or who are biased toward the opinion of so-and-so or so-and-so. We ask for your guidance.
The Shaykh : As for prizes that are set up in Ramadan or outside of Ramadan, if the value of the item is increased because of the prize, then this is forbidden. For example, if an item is worth ten in the market, and the one who set up the prize sells it for twelve, then this is forbidden. Why? Because the buyer will pay an increased price, and he may succeed in the competition or he may not. If he succeeds in the competition, he takes more than the amount added to the price, and if he does not succeed, he becomes a loser. "And if a transaction revolves between profit and loss, it becomes gambling and maysir, and thus it is forbidden". However, if the item sold by the one who set up the prize is sold at its market price, then there is nothing wrong with it, because the buyer is either safe or a winner; that is, either he gets the prize or he is safe, because the price was not increased.
But there is a second issue to be feared from this: it is feared that the buyer will purchase this need when he does not actually need it, but only in order to seek this prize, and by doing so, he wastes his money. The Prophet (peace and blessings be upon him) said: So who is being addressed in this case: the owner of the prize or the buyer? Yes, the one being addressed is the buyer. As for the first scenario where the price was increased, both parties are addressed. But in this case, the buyer is addressed. It is said: There is nothing wrong with buying from the one who set up a prize, but on the condition that you buy what you need. As for buying what you do not need, hoping that you might succeed in this competition, this is a matter of wasting money. It has been reported to me that some people buy cans of milk that have a prize on them and pour them out in the markets or anywhere else. They buy a can, open it, and if they do not find the prize number, they pour out the milk, buy a second can, and so on. Perhaps they buy twenty cans when they do not need even one. This is corruption of money and wasting of money.
Some people say that these prizes are forbidden in all cases, whether they involve wasting money or gambling and maysir or not, because they restrict others. For example, the shop owner who set up this prize attracts people to come to him to buy from him, while others are left out, and this harms them. We say this is correct, but it is up to the authorities of the country to intervene in this. That is to say, it is up to the supervising authorities to intervene in this. If they see that this person has prevented people from buying from others by the prizes he has set up, they have the right to prevent him. But as for him, there is nothing wrong with setting it up if he does not intend to harm others, because he will say: "I set up a prize worth one thousand riyals. Why don't they set up a prize like mine, worth one thousand riyals, or less, or more? I did not prevent them." So if he did not intend to harm others, then as for him, it is permissible.
The Shaykh : As for prizes that are set up in Ramadan or outside of Ramadan, if the value of the item is increased because of the prize, then this is forbidden. For example, if an item is worth ten in the market, and the one who set up the prize sells it for twelve, then this is forbidden. Why? Because the buyer will pay an increased price, and he may succeed in the competition or he may not. If he succeeds in the competition, he takes more than the amount added to the price, and if he does not succeed, he becomes a loser. "And if a transaction revolves between profit and loss, it becomes gambling and maysir, and thus it is forbidden". However, if the item sold by the one who set up the prize is sold at its market price, then there is nothing wrong with it, because the buyer is either safe or a winner; that is, either he gets the prize or he is safe, because the price was not increased.
But there is a second issue to be feared from this: it is feared that the buyer will purchase this need when he does not actually need it, but only in order to seek this prize, and by doing so, he wastes his money. The Prophet (peace and blessings be upon him) said:
He forbade the wasting of wealth
نهى عن إضاعة المالSome people say that these prizes are forbidden in all cases, whether they involve wasting money or gambling and maysir or not, because they restrict others. For example, the shop owner who set up this prize attracts people to come to him to buy from him, while others are left out, and this harms them. We say this is correct, but it is up to the authorities of the country to intervene in this. That is to say, it is up to the supervising authorities to intervene in this. If they see that this person has prevented people from buying from others by the prizes he has set up, they have the right to prevent him. But as for him, there is nothing wrong with setting it up if he does not intend to harm others, because he will say: "I set up a prize worth one thousand riyals. Why don't they set up a prize like mine, worth one thousand riyals, or less, or more? I did not prevent them." So if he did not intend to harm others, then as for him, it is permissible.