Entering tournaments with prizes for the winner

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

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

Gambling is defined as “the ownership of wealth with a risk of loss (tamlikul maal alal mukhatara).” In other words, a form of gambling is where payment is certain from one side, but uncertain from the other. The one paying is staking his wealth, in that it may bring more wealth with it or be lost totally.[1]

Furthermore, gambling requires that the wealth one has put at stake has no valid return in lieu of it. Therefore, if one receives some valid service or product in lieu of the wealth, then that will not be gambling. 

Accordingly, if the organizers of the tournament charge entrance fees to cover actual costs of facilitating the tournament, costs such as booking the pitch, hiring the equipment, etc., then it will be permissible to charge entrance fees. In this instance, teams are receiving a valid service in lieu of the entrance fees. 

It will also be permissible for the organizers to then use the funds to cover their costs as well as voluntarily offer a prize to the winner. This prize will be a gift to the winner. However, if there is a contract in this scenario which legally binds the organizers to provide the prize to the winner, then that will not be permissible. 

And Allah Ta’āla Knows Best

Bilal Yusuf Pandor

Student Darul Iftaa

Lusaka, Zambia

Checked and Approved by,
Mufti Ebrahim Desai