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Competition in which only losers pay is gambling

Question

Assalaamu Alaikum. A group of students started a book reading program, which every student have to read 10 pages daily, if they did not read 10 pages, they have to pay 2 Riyals, and at the end of each month, they collect all the money and go to a restaurant for a get together, and pay the bill with that money, is this transaction forbidden in Islam Jazakallahu Khairan!

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

This transaction is impermissible according to the majority of Muslim scholars because it involves paying compensation by the losers only. This makes the transaction constitutes gambling which is prohibited in Islam. The participants will either win or lose, and this is what gambling is by definition.

Allaah Knows best.

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