I don't think Chess is forbidden in Islam, there are arab and iranian grandmasters for instance. But it was forbidden for some time in some regions:
Note the bolded part.
http://dreamgreen.org/games/noble-celts ... idden.html
In 1981 chess was forbidden in Iran as it encouraged gambling (haram). The chess players went underground with their boards and pieces. In 1988 the Ayatollah Ruhollah Khomeini (1900-1989) issued a religious decree (fatwa), permitting chess play for Muslims as long as it was not played for the purpose of gambling (haram) and it does not delay the obligatory prayers or neglects other duties. The Ayatollah changed his mind after admitting that chess had its high educational and intellectual values. Chess made a comeback, spawning chess parks, chess palaces, and chess masters. In 2000, an Iranian became a world chess champion. In October, 2000, the World Girls' Chess Championship for 12 and under was won by Atousa Pourkashian of Iran at the tournment held in Madrid, Spain. Iran also produced a recent World Boys' Under 10 Champion. Today the Chess Federation of Iran occupies one of the best buildings among all sportive federations in the country. All over the country there have construction of chess clubs.
Prior to the Ayatollah, Iran, under the Shah, was the only Islamic country that organized chess and participated in chess tournaments, including the 22nd chess olympiad in Israel in 1976 (in Haifa).
In 1996 chess and other clubs were banned from some high schools in Salt Lake City, Utah. Most of the school board is Mormon which condemns homosexuality. Rather than let gay high school students form an organization, they banned all nonacademic clubs. School board members said federal law gave them only two options: allow all extracurricular clubs or eliminate them all. Some 30 clubs, including the chess club, are banned for 1996-97.
The Taliban believed chess was a form of gambling and distracted people from saying thier prayers. When the Taliban caught people playing chess, they would burn the chessboard and pieces and put the players in jail. For five years (1996-2001), Afghanistan was the only place in the world where playing chess was illegal. It was banned by Mullah Mohammad Omar, the supreme leader of the Taliban
Note the bolded part.
http://dreamgreen.org/games/noble-celts ... idden.html