Shar‘i Ruling on Prize Bonds
Written by: Imran Ayyub Lahori
Ruling on Prize Bonds
The purchase and sale of prize bonds issued by the government is an unlawful act in Shari‘ah because it is a combination of usury (riba) and gambling (qimar).
- Usury: When a person’s number is drawn, he is given the “prize” from the pooled funds of all participants — this is essentially interest.
- Gambling: The receipt of this amount is not based on any fair, fixed principle but purely on chance and luck, which constitutes gambling.
Furthermore, this practice is also prohibited because it grants the pooled contributions of all participants exclusively to one individual, depriving the rest of their rightful share.
