Gambling

Gambling (also known as betting) is the wagering of money or something of value (referred to as "the stakes") on an event with an uncertain outcome, with the primary intent of winning money or material goods. Gambling thus requires three elements to be present: consideration (an amount wagered), risk (chance), and a prize. The outcome of the wager is often immediate, such as a single roll of dice, a spin of a roulette wheel, or a horse crossing the finish line, but longer time frames are also common, allowing wagers on the outcome of a future sports contest or even an entire sports season.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answer updated 2 days ago

If winning the money comes from lawful business or trading transactions, it will be then lawful. If winning the money comes from a draw or any other non business procedure, then it a gambling which is not allowed. The matter does not depend on whether to win or lose or not to win or not to lose, but depends to the nature of financial activity to avoid gambling in any case.

Wassalam.

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Amina Inloes, Amina Inloes is originally from the US and has a PhD in Islamic Studies from the University of Exeter on Shi'a hadith. She is the program leader for the MA Islamic Studies program at the... Answer updated 7 months ago

Asking how day trading is different from gambling is somewhat like asking how getting lawfully married for an hour is different from prostitution. There is an obvious similarity between the two things, while at the same time the situation surrounding them is somewhat different.

Certainly there are some shared pitfalls between investments and gambling. There is the danger of addiction, losing one's money, obsession with money and losing focus on other things in life, sometimes some ethical questions, and so forth.

At the same time, there are some things that surround gambling that are not usually found with investing, even short-term investing or day trading.

Gambling often has no benefit for society and is often based on a game or wager that will not benefit anyone, such as card games, slot machines, or online apps. (With a few exceptions such as lotteries that fund education) In contrast, the ideal behind investing is that it contributes to a product or business which benefits society. Whether or not day trading fulfills that ideal is another question, but at least the inherent goal is different.

Gambling has often been linked to violence and personal crime.

With investing, one actually gets an asset of value, regardless of how long one keeps it, whereas with gambling, one usually doesn't. So there is an actual sort of trade. 

Casinos and betting shops prey on people who are desperate and already down and are designed to make people lose, otherwise they will not turn a profit. Even in cases where the proceeds from gambling are being used for a greater cause (such as lotteries for education), the system is designed so that the player loses, otherwise there is no point in them running it. Basically it is just another way to extract money from people.

In contrast, the underlying hope behind investing is that the business or product succeeds and that it is a win-win situation, even if, in practice, people lose out, sometimes severely.

If you walk by any place of gambling, or even accidentally end up on one of their sites online, there is often a deep spiritual malaise and a cloud of despair. In some places like Vegas, this is covered up by glitter, underdressed women, and so forth. One doesn't tend to find this in places associated with investing. 

So, these are some of the ways that gambling and investing differ on a deeper level.

Basically it is difficult to be personally or spiritually healthy when being involved in gambling, whereas that seems to be less of a concern for people who work with investments, although of course many things in life can lead to spiritual concerns and one should always be careful.

Anyway, it is always good to think about the ethics and wisdom of what one is doing, and whether or not you personally consider day trading to be ethical is something you have to consider for yourself.

It is also wise to consider the possibility of severe loss and not to put any money into investments (day trading or otherwise) that one can't afford to lose. 

So this is a slightly different approach to the question than a purely shariah answer, hope it provides some useful insights. 

Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 7 months ago

If day trading is a trading in which you buy and sell on the same day,bit will be allowed provided you trade with lawful items only. Gambling is not trading at all that is why gambling is Haraam and lawful trading is not Haraam.

Wassalam.

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Zaid Alsalami, Shaykh Dr Zaid Alsalami is an Iraqi born scholar, raised in Australia. He obtained a BA from Al-Mustafa University, Qom, and an MA from the Islamic College in London. He also obtained a PhD from... Answered 1 year ago

Bismihi ta'ala

In regards to chess specifically, and playing it of course with no gambling, this is a fiqhi matter, where our esteemed Maraji' have different verdicts. 

For example, A.U. Seyid Sistani (may Allah prolong his life) says that it is absolutely haram. 
As for A.U. Seyid Khamenei (may Allah prolong his life), he says if it is commonly seen in the custom of people ('urf) as a gambling instrument, then it is haram, and if not, then it is halal. 

You must refer to your Marja' taqleed for this fatwa. 

And Allah knows best. 

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Amina Inloes, Amina Inloes is originally from the US and has a PhD in Islamic Studies from the University of Exeter on Shi'a hadith. She is the program leader for the MA Islamic Studies program at the... Answered 1 year ago

It is because there are hadith specifically prohibiting chess.

Ayatollah Khamene'i allows chess if it is not being used for gambling, but in general the traditional view is that it is not allowed.

God knows best.

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Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 1 year ago

If there was really no risk of loosing in "matched betting", you would have seen all wealthy companies investing in it. Matched betting is a type of calculated betting which means it is a type of gambling with small percentage of risk. It is a betting and betting is not allowed in Islam.

Wassalam.

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Mohammad Saeed Bahmanpour, Sheikh Mohammad Saeed Bahmanpour is lecturer of Islamic Studies at the Islamic College for Advanced Studies, London, and a visiting lecturer at the University of Cambridge, Faculty of Oriental... Answer updated 3 years ago

Salamun alaykum

Yes this practice is considered as gambling. In general any practice which involves a prize achieved from the property of the participants is gambling.