This form of "lottery" is in fact a method whereby all the participants of the scheme give one of the participants a loan each month. This is acceptable provided that each of the members participating in the arrangement all end up contributing the same amounts to the pool by the end of the period. It is intrinsically different from the normal lotteries and lottos which are nothing but gambling.
Mufti Shafiq Jakhura
Iftaa Department, Darul Ihsan Islamic Services Centre