Q. If someone decides to be part of a competition that has also been approved by the NLCB, is it halaal for one to be part of this transaction? Eg. 1) Completing a form in a newspaper where I have the opportunity to win valuable prizes. Eg. 2) Entering an under the cap promotion where I fill out a form, attach a number of selected covers and place it in a box for a chance to win valuable prizes. For those who host these competitions, will it have severe consequences?
A. If something has been approved by NLCB, this does not mean that they are funding or sponsoring the gifts. Those who host the competition are responsible for giving the gifts.
Islam has prohibited gambling in all its forms, however, the two cases you have given are not known to be gambling by anyone. As such both would be allowed.
If these competitions comprise of unlawful (haram), things then those who host them and those who take part in them would be sinful. However, if these are free from haram activities, then no one will be sinful.
If the cases above were existent during the time of the Prophet (SAW) , then it would have been easy to quote the sunnah. However, since these did not exist, it would be sufficient to use the principles which have been given in the Holy Quran and Ahadith of the Prophet (SAW).
And Allah knows best.
Mufti Waseem Khan