Fatwa No : 82581
Depositing money to receive a motorcycle through a lottery draw

Depositing money to receive a motorcycle through a lottery draw

What do the respected Islamic scholars and esteemed Muftis say regarding the following issue that we have initiated a scheme that will last approximately thirty months and will include 200 members. Each member will contribute either Rs. 67 daily or Rs. 2,000 monthly. Every month, through a lottery draw, a motorcycle along with five additional prizes will be awarded. However, if a member fails to pay their monthly installment for three consecutive months, their membership will be terminated without any prior notice. After the thirty-month period, each of the remaining members will receive a brand-new motorcycle. Moreover, if a member's name is selected for a motorcycle in the lottery draw, all of their remaining installments will be waived. An additional condition is that if any member wishes to receive a motorcycle without participating in the draw, they must pay an extra Rs. 1,500 along with their monthly installment. We seek guidance on whether this scheme is permissible under Islamic law, and whether it is permissible to become a member of such a scheme. Kindly provide your answer in the light of the Qur’an and Sunnah.

الجوابُ حامِدا ًو مُصلیِّا ً

The mentioned scheme is not permissible due to several non-Shari'ah-compliant elements:
1. The price of the motorcycle obtained through the lottery draw is unknown (uncertain).
2. Paying the next installment in the hope of winning a motorcycle in the draw involves elements of gambling.
3. Termination of membership in case of failure to pay installments for three months.
4. Charging an amount significantly higher than the actual price of the motorcycle (i.e., Rs. 15,000) for obtaining it without participating in the draw.
Due to these factors, this arrangement is not valid according to Islamic law. Therefore, participating in this scheme and obtaining its membership is impermissible and must be avoided.