Is GME (GameStop Corp.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, GME is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in GME.

GameStop Corp. is a global specialty retailer focused on the gaming and entertainment industry, operating thousands of stores across North America, Europe, and Australia. Its primary business involves selling new and pre-owned video game consoles, software, and accessories, alongside a growing segment of pop culture collectibles and digital currency. The company is currently pivoting from a traditional brick-and-mortar model toward a broader e-commerce ecosystem. For Muslim investors using HalalStocks.co.uk, GameStop is currently classified as 'Doubtful' rather than fully compliant. While the company operates in a permissible sector, it failed the liquidity screen because its cash and short-term securities make up 44.3% of its market cap, which is well above the 33% threshold set by AAOIFI standards. This often happens when a company raises significant capital but hasn 't yet deployed it into physical assets or inventory. From a financial health perspective, GME shows strong adherence to debt limitations, with a debt-to-market cap ratio of just 3.8%, indicating very low leverage. Additionally, its interest income relative to total revenue is 4.27%, which sits safely within the 5 % tolerance limit for non-operating interest. Investors should monitor the company's cash deployment strategy; if GameStop uses its cash reserves for acquisitions or inventory, the liquidity ratio may drop back into compliant territory. GameStop Corp. operates in the Consumer Cyclical sector under the Specialty Retail industry and is headquartered in Grapevine, TX, US. The company is led by CEO Ryan Cohen and employs approximately 6,000 people.

GME was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. GME passed 3 of these 4 screens.

GME was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.