Prize Bonds

Question :

In certain countries, some banks issue what is known as a "prize bond." People buy this bond, and if their number of their bond is drawn at the end of any given month, they win a big prize. People do not lose money though, as they may redeem their bonds at any time for the price that they purchased them for. Is this permitted in Islam?

Answer:

The practice you described is a form of gambling, which is one of the major sins:
"O you who believe! Intoxicants (all kinds of alcoholic drinks), gambling, Al-Ansab (stone altars), and Al-Azlam (arrows for seeking luck or decision) are an abomination of Shaytan's handiwork. So avoid that in order that you may be successful. Shaytan wants only to excite enmity and hatred between you with intoxicants (alcoholic drinks) and gambling, and hinder you from the remembrance of Allah, and from As-Salah. So, will you not then abstain?”

A person who participates in this should repent, seek forgiveness from Allâh, and stay away from such activities; he should also rid himself of any money that he won in the past perhaps that Allah Almighty may forgive him.

May Allah send peace and blessings upon Muhammad, his family, and his Companions.

Source:
The Permanent Committee
Fatawa Islamiyah, Vol. 8 Pages 272-273