Reasons on the Similarity of Objections with Regards to Gambling and Speculation in Islamic Finance and Conventional Finance

Abstract

Gambling and speculation which leads to zero-sum outcomes are prohibited in Islamic finance and condemned in conventional finance. This article explores the reasons for the similarity of objections towards gambling and speculation. Three probable reasons are explored namely the concept of stewardship in conventional thought and the concept of khalifa in Islam, Christianity and morality's influence on conventional law and finance and the concept of ethics of sacrifice and ethics of tolerance.

Gambling Disorder and Other Behavioral Addictions

“…Studies using reward-processing and decision-making tasks have identified important contributions from subcortical (e.g., striatum) and frontal cortical areas, particularly the ventromedial prefrontal cortex (vmPFC). Among disordered gamblers, versus healthy controls, both decreased 99–102 and increased vmPFC activity 103 has been reported during simulated gambling and decision-making tasks. Similarly, gambling stimuli has been reported to be associated with both decreased 104 and increased 105,106 vmPFC activity in disordered gamblers.…”

“…99,107,108 Relatively greater activation of other frontal and basal ganglia areas, including the amygdala, during high-risk gambling decision making in the Iowa Gambling Task has been observed among disordered gamblers. 103 While data are relatively limited for other behavior addictions, several recent cue-induction studies have demonstrated activation of brain regions associated with drug-cue exposure. Individuals playing World of Warcraft (a massive, multiplayer, online role-playing game) more than 30 hours per week, compared to nonheavy players (playing less than 2 hours per day) displayed significantly greater orbitofrontal, dorsolateral prefrontal, anterior cingulate, and nucleus accumbens activation when exposed to game cues.…”

Sport and Common Business Practices for the Sport Investor through the Lens of Islam

“…Interestingly, the concept of risk aversion is frequently discussed within Muslim communities and recognized as critical for non-Muslims to acknowledge (al-Qardawi, 1994;Damansari 2007;Kunhibava, 2011 under Sharia (Kunhibava, 2011). Allah provides the opportunity for man to realize a bounty and to possess wealth (Kunhibava, 2011).…”

“…Allah provides the opportunity for man to realize a bounty and to possess wealth (Kunhibava, 2011). However, the possession and creation of wealth should be utilized to again improve the social welfare for all, and within, men who control wealth owe it to their peers not to gamble or engaging in risky behavior (Kunhibava, 2011).…”

“…Al-Qardawi (1994) exposure to foreign amusements Jews were exposed to investment risks and games of chance (Kunhibava, 2011). Further, they are noted as readily embracing those activities despite the fact that Rabbis of the Second Temple period (i.e., 530 BC to 70 CE) were "bitterly opposed to these imported fashions and looked upon them with intense aversion" (Kunhibava, 2011, p. 6).…”