Addressing the Islamic stance on playing games like dice, Sheikh `Atiyyah Saqr, former head of Al-Azhar Fatwa Committee, states:
“As for the game known as backgammon, the Prophet, peace and blessings be upon him, says: “He who plays with dice will be deemed as a person thrusting his hands in pig’s blood.” (Reported by Muslim on the authority of Buraydah)
In his commentary on the previous issue, Imam An-Nawawi states that,
“The Arabic word ‘Nardasheer‘ is the same as “Nard” (dice). It is foreign in origin but has been Arabized with the word “sheer” at the end which means something nice.
Imam Shafi`i and other Muslim scholars (the Majority of them) have taken this Hadith as evidence to condemn games using a dice.
Abu Ishaq says: “Some of our scholars maintain that it’s just detested and not unlawful” (See Sharh Muslim, vol. 15, page 15)
There is another Hadith on this issue, which states: “He who plays with a dice has disobeyed Allah and His Messenger.” This Hadith is reported by Malik on the authority of Abu Musa Al-Ash`ari, and the wording here is that of Malik. It is also narrated by Abu Dawud and Ibn Majah and Al-Hakim and Al-Bayhaqi. But they didn’t refer to this game as “Nard” or “Nardasheer” (dice). Al Hakim described this Hadith as authentic based on the endorsement from both Al Bukhari and Muslim. (See Tafsir Al-Qurtubi, vol. 8, page 338)
Also in the book At-Targheeb Wat-Tarheeb (vol. 4, page 4) Al-Hafidh quoted the majority of scholars as saying that this game is unlawful; it is even said that all the scholars are unanimous.
Based on this, Dr. `Ali Sayed Ahmad of Al-Azhar University maintains that trading in such a game is also impermissible, for it will be deemed as an unlawful trade. But if one trades in an assortment of games or items which merely include dice, this will be considered as a dubious matter, which Muslims have to be cautious of and avoid with the intention of replacing them with other lawful items.”