Generally, lotteries are considered haram in Islam for several reasons. These are the main reasons.

Uncertainty:

Lotteries have a high level of uncertainty and risk. In the Islamic finance system, transactions should be free from uncertainty. For that uncertainty, a term used in Islam is called Gharar. Gharar refers to any uncertainty in the basic element of a contract. Since participants in a lottery are gambling on an uncertain outcome, this falls under the prohibition of Gharar.

Gambling:

A lottery is considered a form of gambling, which is haram in Islam. Gambling means as gaining money through the rule of chance. The amount was never used to produce anything. The Quran guides us to the prohibition of gambling.

O believers! Intoxicants, gambling, idols, and drawing lots for decisions are all evil of Satan’s handiwork. So shun them so you may be successful. (Quran 5:90)

Unjust Enrichment

In Islam earning money should come from work, business, products, and effort. Lotteries are based on nothing and have no product or effort. This is unacceptable in Islamic teachings.

Impact on Society

Lotteries can have negative social consequences, such as cause addiction to gambling, leading to financial loss for some people and their families. Islam wants the protection of wealth and discourages these kinds of practices that can lead to unnecessary loss.

Scholarly Consensus

Most Islamic scholars agree on the Haram of lotteries. Major Islamic researchers and scholars from different schools of thought including Hanafi, Maliki, Shafi, and Hanbali, generally concur that lotteries fall under the category of prohibited transactions due to Gharar, maisir, and unjust enrichment.

Exceptions and Differences of Opinion

While the majority view is that lotteries are haram, some contemporary scholars and jurists have explored whether certain forms of lottery, particularly those intended for charitable purposes, might be Halal if they do not involve significant personal risk and the proceeds are used for public welfare. However, this is a minority opinion and often comes with many stipulations to ensure it does not resemble traditional gambling.

In conclusion, based on the principles of Islamic finance and the consensus among scholars, lotteries are generally considered haram due to the elements of uncertainty, gambling, and unjust enrichment involved.