Prize bonds are definitely haram. For halal business, you need to look at
- there is possibility of profit and loss; AND
- there is value addition to the business/product/service at a fair rate based on normal market prices.
Both these conditions need to be satisfied at least. Just one of them is not enough. If only the first condition was allowed, gambling would be halal since it has both profit and loss possibility. The second condition is to prevent hoarding, black marketing, monopolies, etc.
Islam encourages earning your living in a manner that drives the market and keeps money in circulation, checks the divide between rich and poor, and enforces healthy competition.
Haram business and haram money are strictly forbidden with huge and grave punishments.
