A form of riba and gambling

Question

Question: (1) A man has set up ten numbers. People stake one rupee; the one whose number comes up is given fifty rupees, and the one whose number does not come up forfeits his stake. Is this permissible or not? (2) In this matter they use the stratagem (hila) of saying, “I have made a gift.” Is it permissible to give in this way by making it a gift (hiba)?

Answer

(1) This transaction is both gambling (qimar) and riba. It is gambling because, if the number does not come up, the rupee that was paid will be forfeited; and it is riba because in exchange for one rupee fifty rupees are received when the number comes up.

Source: Fatawa Mahmudiyya

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