Can Lottery Become Halal?

 

A new idea allows people to earn lottery chances by doing good deeds, like helping others or doing well in school. However, since uncertainty (gharar) is discouraged in Islam, the question arises: Are these effort-based lotteries allowed? This article will explore how they work and examine them from a Shariah perspective.

Understanding Effort-Based Lottery

An effort-based lottery is a new way to win prizes. Rather than purchasing tickets, participants earn chances through doing good things. This could be helping the community, doing well in school, or caring for the environment. This type of lottery makes people want to do helpful things. It also makes people feel more connected to each other and involved in their community.

Examples of Existing Effort-Based Reward Systems

Several platforms already utilize effort-based mechanisms to reward users: 

1. Helping Others: People can earn lottery chances by volunteering. For example, they might get a ticket for each hour they help at a community event.
2. Environment: People can get lottery tickets to help clean up parks or planting trees. The more they help, the more chances they get to win.
3. Games: In games like Mobile Legends, players can get lottery tickets by doing well in matches or finishing special tasks.
4. Crypto Space: For example, Litentry’s event "Win with Every Draw" Event (27 April 2024) offered rewards of up to $100 USDT, where participants earned lottery chances by completing tasks or inviting friends. Each referral increased their odds of winning, and referred friends continued bringing rewards back to the original participant.

These lotteries reward people for their efforts and good actions, not just for buying tickets with money.

 

Shariah's Perspective on Effort-Based Lottery

Traditional lotteries are considered haram  because they rely purely on chance and can lead to financial harm and it’s a form of zero sum game where other parties bear the losses. It’s exactly similar to gambling or Maisir that has been mentioned in Surah Al-Ma'idah (5:90). The verse warns us about gambling as harmful and associated with the work of Satan:

يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ إِنَّمَا ٱلْخَمْرُ وَٱلْمَيْسِرُ وَٱلْأَنصَابُ وَٱلْأَزْلَٰمُ رِجْسٌۭ مِّنْ عَمَلِ ٱلشَّيْطَٰنِ فَٱجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ

Means: O you who have believed, indeed, intoxicants, gambling, [sacrificing on] stone altars [to other than Allah ], and divining arrows are but defilement from the work of Satan, so avoid it that you may be successful.

In Shariah, some uncertainty (gharar) is allowed if it’s minor (gharar yasir) and doesn’t cause harm. Effort-based lotteries may fit this category because participants know the rules and their actions affect the outcome, making it more transparent and less risky than traditional lotteries. However, scholars should review each case to ensure it follows Shariah principles.

Condition Permissible

Some scholars take a more flexible view of certain lottery-like activities, focusing on their purpose and intent. In Fatwa forum discussions, Dr. Monzer Kahf distinguishes between exploitative gambling and legitimate prize systems. He maintains that random prize distributions can be permissible when they serve promotional purposes or recognize achievements, provided participants don't pay for entry. This interpretation differentiates such systems from conventional lotteries, where purchasing chances to win constitutes prohibited gambling. However, strict conditions must be met to align with Islamic principles:

• No Exploitation: Participants must not be taken advantage of, especially vulnerable groups.
• Transparency: Clear rules and fair participation are essential.
• No Financial Loss: Participation should not cause harm, with entries tied to meaningful actions or necessary purchases.

The prize guidelines issued by Jabatan Kemajuan Islam Malaysia (JAKIM) serve as additional regulations for effort-based lotteries to minimize Shariah non-compliant risks and ensure alignment with Shariah principles:

1. Prizes must originate from lawful (halal) sources following Islamic values. 
2. Prizes must not be funded through participants' entry fees or pooled contributions. 
3. Prizes must hold meaningful value and offer practical benefits to the winners. 
4. Prizes must align with the rules and conditions outlined in the contest to ensure transparency and fairness.  

These guidelines help ensure that effort-based lotteries maintain fairness, avoid exploitation, and uphold Islamic ethical standards.

Conclusion

In conclusion, effort-based lotteries provide a Shariah-compliant option by rewarding actions rather than chance. Prizes must follow set guidelines to ensure compliance. These lotteries support Islamic values by encouraging fairness, personal growth, and community involvement while reducing gambling elements and uncertainty