Fatwa's Insights - Muamalah
Fatwa On Competitions And Competition Money
THE 37TH MEETING OF THE PERLIS STATE FATWA COMMITTEE / 2018
12 SEPTEMBER 2018
FATWA ON COMPETITIONS AND COMPETITION MONEY
The ruling on competitions is permissible if prizes come from a third party (not participating in the competition) and participant fees are used solely for the participants' benefit with equivalent value, such as for food, drink and other management costs.
However, all competitions must not lead to prohibited matters or the abandonment of religious obligations, such as competitions that expose the aurah (parts of the body that must be covered), cause the abandonment of prayer, diminish intellect, degrade dignity, corrupt morals, incite enmity, damage the environment and similar matters.
As for the organization of competitions involving fees from participants to be made into prizes, whether the entire fee or part thereof, it is prohibited (haram) due to the presence of gambling elements.
However, competitions involving paid wagers (competition fees) or any property value are permissible if the following conditions are met:
1) It must not depend solely on chance without being based on knowledge or skills recognized by Islamic law. This includes competitions such as number guessing, scratch and win, competitions on the weight of fish caught, guessing which football team will win, dice throwing and similar activities.
2) There must be no less than one-third (1/3) of participants who are qualified and competitive participating in the competition without being charged a wager fee. For example, if 30 football teams compete, 10 of them must be exempted from competition fees.
If both or either of the above conditions are not fulfilled, then such competition is prohibited.
Resolved at the Meeting of the Majlis Agama Islam dan Adat Istiadat Melayu Perlis No. 6 of 2018 convened on 6 December 2018.