Dr. Monzer Kahf, a prominent economist and counsellor states: “I have two considerations: 1) once all participants share in paying for the prize, it seems as if everyone is buying the chance by what they pay. This is not permissible; in a fatwa about paying prizes to winners from fees collected from all contestant in a basket ball league I mentioned that it is not permissible; and 2) Here is a cause that is trivial on one hand and cooperative or association-based on the other (being good is not a factor because lottery is prohibited in spite of its good cause).
Buying a Prize Together and Giving It to the Winner
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