Ruling on competitions

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Qimar (gambling) is prohibited in Shariah.  In terms of Shariah, Qimar is known as the act in which there lies a possibility for each of the competing parties to gain or lose.  In other words, there exists a possibility that one may benefit from the opposing party’s wealth or may lose over one’s own wealth to the opposing party. [1] 

In principle, if one is required to pay money to enter into a competition, the prize awarded therefrom is impermissible.  However, if there is no fee upon entrance into a competition, then the prize awarded is regarded as a gift, thus permissible.

In order for us to issue a ruling on the example given in the query, adequate information regarding the details of the competition is required.  The information given in the query is not sufficient.

And Allah Ta’āla Knows Best

Abdul Azīm bin Abdur Rahman,
Student Darul Iftaa
U.S.A.

Checked and Approved by,
Mufti Ebrahim Desai.