Is There Gambling In Israel

The first of the Israel casinos that you can visit on the water is the Casino Flamingo. This sails from Eilat Port in Eilat and the duration of the cruise will be four hours long. It is one of the top Eilat casinos around. In the 1990s, Netanyahu’s long-time backer Sheldon Adelson, a casino magnate, was blocked after expressing an interest in opening a casino in Israel. Gambling in Israel has a complex status.

1. Is There Gambling In Israel International
2. Is There Gambling In Israel Right Now
3. Is There Gambling In Israel Jerusalem
4. Is There Gambling In Israel State
5. Is There Gambling In Ireland

The State of Israel occupies a small territory, bordering with Middle Eastern countries like Syria, Lebanon, and Egypt. The country is home to 8.6 million people as of 2020, with a gross domestic product (GDP) per capita of US$43,641 in 2019. Israel’s residents get to enjoy a high living standard, which can be partially attributed to well-developed economy sectors like the tourism sector and the industrial export sector.

The high-tech sector and science-based industries also have a major contribution to the growth of the Israeli economy over the past three decades. The country has a significant output when it comes to manufacturing electronics, software, computer technologies, and advanced systems for communication.

Considering all this, it is anything but surprising many companies that hail from Israel are engaged in the provision of online gambling platforms. Israel is the country of origin of famed entrepreneur Teddy Sagi, who founded one of the most accredited gambling software companies in the world, Playtech.

Not surprisingly, one of the offices of the renowned software giant is located in the heart of the country’s largest hi-tech hub, Tel Aviv. The latter, being a major technological center, is also home to the offices of established online gambling brands like 888.

William Hill, another major player on the gambling scene, had a very successful partnership with Sagi’s Playtech and operated an office in Tel Aviv until it eventually relocated to the United Kingdom in June 2017.

The country has established itself as a major supply-center for interactive gaming, with a substantial share of over $90 billion in this industry as of 2015. Oddly enough, not all forms of gambling have been legalized by the state. This article by SuperCasinoSites expands on the legal forms of gambling in Israel, on who regulates them, and how.

Israel’s Legal Forms of Gambling and the Laws Governing Them

Legal gambling is anything but thriving in Israel since most forms of these activities are expressly prohibited by the local laws. Casino games with fixed odds, such as slots, blackjack, casino-banked poker, and roulette, are strictly disallowed in both digital and landbased form.

Live and tournament poker is also not permitted under the local legislation. Israeli law still considers it a form of casino gambling and therefore, prohibits it, although this type of game is not expressly defined by the local legislation. However, Israeli legislators have debated its status in the past, and more specifically toward the end of 2018.

Is There Gambling In Israel International

The majority of the judges in the country’s high court opined that this type of game should not be considered a prohibited form of gambling since it involves both chance and skill, especially where tournament poker is concerned. The matter was discussed during Civil Appeal (Supreme Court) 476/17 Amit Amishvili Rafo vs. Assessing Officer Tel Aviv 4 in October 2018.

The appeal was issued by a poker player who participated in tournaments held outside of the country. The case had to do with the taxation of his earnings. The high court ruled in favor of the player and most judges expressed the opinion tournament poker should not be treated as a chance game (page 227). Nevertheless, these remarks were expressed in obiter dictum and therefore, were not legally binding as a precedent.

Yet, there is still a silver lining for poker fans based in Israel. Toward the end of 2018, one of the members of the National Liberal Movement (aka the Likud), Sharren Haskel, proposed a new piece of legislation that aims to bring legal and regulated tournament poker on Israeli soil. The bill has not yet been voted into law, though.

Bingo is another form of gambling the local legislation prohibits in online and landbased form. According to the Israeli laws, this is a form of lottery and as such, it cannot be offered legally, not even by the state lottery. The lottery-style game of keno was initially permitted in a brick-and-mortar form but was outlawed back in 2018. There are no specific regulations on social gaming and therefore, offering and engaging in such activities is neither legal, nor illegal.

Is There Gambling In Israel Right Now

All these restrictions narrow down the list of legal gambling forms to two activities, the first one being sports betting. Legal wagers can be placed on sports both online and offline. Online and landbased wagering on the outcomes of sporting events is permissible under local law but is heavily monopolized.

The only entity that has the legal right to operate and accept sports wagers in a digital or offline form is the Israeli Sports Betting Board, abbreviated as ISBB. Legal wagering on horse racing was officially launched in the country in the fall of 2013 via the ISBB Racer application. However, it lasted for a short period and was discontinued by the Ministry of Finance in both digital and landbased form in 2018. As for online sports betting, Israelis can punt on the official ISBB website Winner.co.il.

Lotteries are the second form of legal gambling in the country and enjoy huge popularity among the locals. Lotteries are regulated by the Israeli Ministry of Finance. The latter is mandated with the oversight of the services provided by the National Lottery of Israel, locally known as Mifal Hapayis.

The latter presently does not offer its services in a digital form, though. Mifal Hapayis is currently authorized to offer weekly lotteries, raffles, and scratchcards. Bar the above-mentioned exemptions, all other gambling activities are disallowed under the provisions of the country’s Penal Law 5737-1977.

On a side note, trading with binary options is not considered a form of gambling in Israel as is the case in other jurisdictions. This activity falls under the scope of the local securities legislation and is not governed by the Penal Law. Nevertheless, Israeli citizens are not permitted to trade binary options with people who are based outside the country.

Penal Law 5737-1977

Gambling is subject to discussion in Part II, Chapter 8, Article 12, page 73 of Law 5737-1977, entitled Prohibited Games, Lotteries, and Betting. Under Article 12, the definition of a prohibited game is one where an individual can earn monetary prizes or other benefits, depending on the outcome of the game. Said outcome is based predominantly on chance rather than on understanding or skill.

Article 12 also tackles the prohibition of lottery games and other betting activities. It states that if an individual is caught organizing or running such prohibited games, they are liable to monetary sanctions or in the worst-case scenario, to imprisonment of up to three years. As for the fines, these can reach up to ₪452,000 per violator.

Section 235 of Article 12 (page 76) discusses the confiscation of illegal gambling-related equipment such as gambling machines and illegally printed lottery tickets. If the Israeli Court deems fit, such equipment is confiscated in favor of the Treasury under the provisions of the country’s Criminal Procedure Law 5725-1965.

As for individuals who are caught engaging in prohibited gambling activities, they are at risk of being fined or facing jail time with a maximum duration of one year. A similar punishment awaits those who are guilty of printing and distributing illegal lottery tickets.

Article 12 also explains that venues hosting illegal card games or offering gambling machines will be closed by a district police commander of the state police force. Certain exceptions are made under section 230 of Article 12 of Law 5737-1977 (page 74).

The above prohibitions do not apply in cases where the conducted games are intended for a certain circle of individuals and used only for entertainment purposes. This basically means Israeli residents can gamble between themselves recreationally without the fear of prosecution.

Sports Betting Regulation Law 5727-1967

Israel has legal forms of sports wagering in both digital and brick-and-mortar form. When sports betting was first legalized, Israeli punters could wager solely on football games. The list of options gradually expanded over the years, with betting on basketball matches being added in 1996. A decade and a half later, local bettors were allowed to place wagers on several other sporting activities, both local and international.

Online and terrestrial forms of sports wagering are regulated in Israel under the provisions of Sports Betting Regulation Law 5727-1967 (page 142), enacted in 1967. The passage of this piece of legislation also laid the foundations for the establishment of the Israeli Sports Betting Board (ISBB), tasked with the responsibility of organizing, conducting, and regulating wagering on sports events on local soil.

The board members of the ISBB are appointed directly by the Israeli Ministries of Finance, and Education and Culture. Many of the provisions of Law 5727-1967 deal with the responsibilities and the scope of authority delegated to the ISBB. For the time being, ISBB is allowed to provide a limited range of sports wagering activities.

Licensing Process, Taxation, and Minors Protection

In the State of Israel, permits for gambling activities are issued only to the state-owned National Lottery (Mifal Hapayis) and the Israeli Sports Betting Board (ISBB), allowing them to legally provide lottery products and sports wagering, respectively. Both licensees fall under the regulatory scope of the Israeli Penal Law 5737-1977 and the Sports Betting Regulation Law 5727-1967. There are no procedures for commercial licensing under Israeli legislation.

The Mifal Hapayis license expires and has to be renewed every five years. The license granted to the ISBB is perpetual in the sense it has no expiration date and does not require renewal. No other permits are granted and therefore, offshore gambling operators cannot legally penetrate the Israeli gaming market for the time being.

ISP providers in the country were initially instructed by the Israeli government to block the websites of foreign-based gambling operators that target local players. However, this was later overturned by the country’s high court. The year 2017 saw the passage of the Powers to Prevent the Commission of Offences by Means of an Internet Website Act 5767-2017.

This piece of legislation allowed district court judges to instruct ISPs to restrict the access to offshore gaming sites when requested by the local police authorities. Three websites were blocked in the following year. As for taxation, Israelis can be taxed for profits generated via legal gambling activities.

As much as 35% is deducted from their earnings annually provided they exceed the amount of ₪61,000. The rates for sums ranging from ₪30,500 and ₪61,000 are incremental. However, this should be a concern primarily to professional sports bettors or lottery winners who generate more substantial yearly winnings.

Small-scale gamblers are exempt from paying taxes whenever their annual profits are under ₪30,500. This amount was previously higher at ₪50,000 but was reduced by the local legislature at the beginning of 2019. Another thing worth mentioning is that non-cash prizes are granted to the winners only on condition the latter had paid the required sum in withholding taxes.

After the case with Civil Appeal 476/17, the Israeli lawmakers introduced some changes to the taxation procedures. They determined that the earnings of professional tournament poker players generated outside the country should be taxed as actual income rather than as gambling-related profits.

As for the legal gambling age in the country, Israeli citizens must be 18 years old or above to legally engage in permitted gambling activities. This was not the case before 2007 when Mifal Hapayis tickets could be sold to individuals under 18. However, the law was changed to prohibit this.

Under Section 231A. (a) of Chapter 8, Article 12 of the Israeli Penal Law (page 75), selling lottery tickets and providing sports betting services to minors are criminal offences and as such, are punishable. Individuals caught in this transgression are liable to imprisonment of half a year. Additionally, people who sell or distribute such tickets or services must require customers to provide a document for personal identification to confirm they are of legal gambling age.

Israel Gambling Regulators

The gambling sector in Israel is monopolized, with foreign operators not having the option to apply for local licenses. Two state-owned bodies operate and oversee the allowed gambling activities in the country.

Mifal Hapayis

The first one being the Mifal Hapayis. This is Israel’s National Lottery which falls under the regulatory scope of the Ministry of Finance.

Mifal Hapayis is a massive state-owned organization whose revenue in 2012 reached an impressive ₪5 billion. The National Lottery’s beginning dates back to the early 1950s when it was founded in Tel Aviv. The organization is very active when it comes to supporting Israeli establishments, with a substantial part of its revenue going toward the funding of schools, youth centers, sports halls, and children’s hospitals.

One example comes from the year 2007 when the Lottery awarded ₪1.1 billion from its overall annual revenue (₪3.8 billion) for the funding of different social projects. The remainder was used to pay out the winners. Mifal Hapayis is authorized to provide weekly lottery games and similar number games, scratchies (known as Hish Gad in Israel), and card-based chance games that use short decks.

The latter are not your typical casino card games, though. Instead, participants must pick one card of each of the four suits. A lottery representative would then pick four more cards, one of each suit, and award prizes if there are one or more matches.

The Israel Sports Betting Board

The Israel Sports Betting Board (ISBB, also referred to as Toto), it was established back in 1967 after the passage of Sports Betting Regulation Law 5727-1967. This is a statutory organization with around 160 employees and an annual turnover of more than US$816 million for the year 2018. The entity recently launched a new project in partnership with the Israeli Ministry of Culture and Sport.

As much as ₪5.5 billion will be poured into building various sports centers around the country over the next ten years. The statutory corporation has eighteen board members from the public, governmental, and sports sectors. A substantial portion of the ISBB revenue is used for the advancement of the country’s sports sector.

Is There Gambling In Israel Jerusalem

ISBB is authorized to provide landbased sports betting but it also accepts online wagers via its Winner domain. It offers fixed-odds daily sports betting on football and basketball games as well as weekly betting. The corporation has membership in global sports organizations such as the World Lotteries Association (WLA) and the European Lotteries Organization (ELO). The same goes for Mifal Hapayis.

Responsible Betting and Advertising Policies

Given how conservative Israel’s stance on gambling is, it only makes sense the country is very strict when it comes to ensuring responsible gaming. Mifal Hapayis must adhere to certain policies that aim to prevent problem gambling. On top of that, the National Lottery must annually contribute a portion of its revenue toward researching and treating gambling addiction and its harmful effects on the Israeli society.

As much as 3.5% of Mifal Hapayis’ yearly promotional budget is spent on various campaigns that deal with prevention, finding, and treating gambling addicts. Additionally, Mifal Hapayis is expected to publish information about responsible gambling on its official website, which it does. Customers who purchase lottery tickets in terrestrial outlets are also warned about the risks of addiction.

With that in mind, lotteries and sports wagering cannot be advertised on television, in newspapers, and so on. Chapter 8, Article 12, Section 227 of Penal Law 5737-1977 (page 74) states that “If [a person] printed or published an announcement about a lottery or betting, then he is liable to one year imprisonment or to double the fine of [₪67,300]”.

Israel is known to have one of the most innovative economies in the region, but has the country adequately taken advantage of one of the largest entertainment sectors, gaming?In this article, we will discuss the current state of the Israeli gaming industry, what it may look like in the future, and how Israeli companies are shaking up the industry.It may surprise some, but Israel has a long history of involvement from employees to industry titans.BackgroundAccording to NewZoo, the gaming industry topped $138 billion in global revenue. Mobile gaming is the largest sector, and it accounts for just over half of gaming revenue at 51%.More impressive than the massive numbers is the unprecedented growth the industry has seen over the past ten years. The total gaming industry has seen 10% annual growth over the past ten years, and these trends are expected to continue. Once again, mobile gaming is the highest growing sector, and it is projected to account for an increasingly large portion of the gaming pie. Mobile gaming has had over 10% growth every year since the first iPhone released in 2017, and as smartphones continue to spread across the globe mobile gaming will continue to grow.In terms of geography, Asia-Pacific is the biggest region for gaming with 52% of the revenue coming from this area. China and Japan may be leading the way, but all other regions are still seeing a massive growth in the number of gamers.Mobile gaming continues to impressively grow as more people around the world gain access to smartphones and the capability to play mobile games. Mobile gaming has also seen a shift in recent years, and small microtransactions are now the name of the game for game developers.In total, mobile gaming is predicted to be a 100-billion-dollar industry by 2021, and the massive mobile sector has a wide impact on the total gaming industry.

Is There Gambling In Israel State

IsraelBut, where does Israel fit into this massive industry and how has the country impacted the direction of gaming?The Israeli start-up scene is known for its strength around the world, so it would make sense that Israeli developers and entrepreneurs have their hands in the gaming world. And in recent times, Israeli companies have made some headlines for their economic contributions to the gaming industry.In 2017, Australian gambling company Aristocrat bought out Israeli company Plarium for $500 million. Plarium owned Vikings: War of Clans, one of the highest-grossing mobile strategy games, and the sale earned Israel clout on the international gaming scene.Plarium’s acquisition by a gambling company also highlights another trend in gaming: the entrance of the gambling industry in traditional gaming.Online gambling is also a growing industry, and companies regularly shift their offerings from physical casinos to online gambling websites. Companies hosting online casinos have expanded the industry and shown the thirst of consumers to have their gambling available online.But, gambling has also entered traditional computer and mobile gaming in a very different manner. Many video games use elements of gambling in their purchases such as loot boxes to diversify their revenue streams. No longer do game developers solely rely on the purchase of the game, but gamers constantly reinvest in games for the chance at better items or chances of winning.A noticeable amount of gaming growth can be attributed to this shift in gaming companies, and as evidenced by the Plarium acquisition, Israeli companies have made some innovative and profitable moves in this space.Israeli gaming company Playtika was also purchased for $4.4 billion in 2016, and still has offices in Israel. Similar to Plarium, Playtika is a gaming company that boasts an innovative story. Playtika works in the space of social network games, and they are the highest grossing game developer on Facebook.Both video game companies have produced countless jobs and contributed large sums of tax dollars to the Israeli government, and they are examples of how Israel can be a hotbed for gaming.Gaming is growing, and it is seeing sea change that will impact the industry for years to come. And, Israeli start-ups and entrepreneurs can continue to capitalize on the market growth and demand for gaming.But, not only has Israel been big in the traditional gaming scene, but the country’s entrepreneurial spirit has also resulted in large changes in the online gambling industry.Online gambling

Is There Gambling In Ireland

While traditional gaming has taken some elements from gambling to implement in their game designs, online gambling is also thriving as an industry.Due to relaxing regulations in countries across the globe, online gambling companies are increasing their offering on the internet. Israeli entrepreneurs and companies have also factored into this industry push.Four Israeli entrepreneurs founded one of the most successful gambling brands in 1997, 888. 888 operates out of Gibraltar, but the founders' roots are in Israel, and it can be seen as an Israeli success story despite the fact the company does not operate out of the country.888 owns a variety of websites and brands, and it has recently launched a new online casino to add to its many online offerings.Despite the success of 888, Israel has quite strict gambling laws, and many online casinos and gambling websites are not legal in the country.However, the national lottery, Mifal HaPayis, is allowed to operate in the country, and it offers several other gambling games outside of the lottery including card and numbers games. The national lottery is one of the only ways in which Israeli citizens can participate in online gambling consumption despite many Israelis working in the industry.The money from the national lottery was originally earmarked for healthcare services, but now the revenue goes to a variety of sectors including, art, culture, parks, and education.However, the Israeli state is missing out on massive potential revenue from having very limited, legal gambling. Increased tax revenue from gambling could go to the same services that the national lottery provides money for, and it could massively increase the nation’s tax base.English bookmaker William Hill has offices in Israel, however, Israelis are not allowed to use the gambling services of the company. Rather than allowing citizens to participate in gambling, the Israeli government has benefitted from the high-tech growth surrounding the gambling industry.From marketing to financial support to software development, Israel companies have their hands all over the gambling industry, despite Israelis being unable to bet.Playtech, a software development company that develops the software in many online gambling websites, is one of these examples. Israeli entrepreneur Teddy Sagi founded the company, and the software giant now has offices in Israel and employs many Israeli workers.Software development is a key component of online gambling, and Playtech’s service makes it possible for companies to host online gambling and build online casinos. Playtech has served an integral role in the spread of online gambling popularity.While the company was founded in Estonia and currently has its headquarters on the Isle of Man, Israel still benefits from the high-tech developments of Playtech. Furthermore, the founder’s background shows that Israelis are often on the cutting edge of the industry.Much of the Israeli involvement in the industry also revolves around marketing. Marketing allows gambling firms the ability to differentiate themselves from the ever-growing pack, and many gambling companies choose to do their marketing business out of Israel.In both marketing and software, gambling provides Israel with numerous jobs and is a great source of economic investment in the country. Israel’s participation in the gambling industry is likely to grow as the current companies grow and gain trust in the industry.Likewise, Israeli investors will look at their fellow countrymen and see a great business opportunity. As gambling and gaming grow in the coming years Israel’s involvement in the gambling industry will only grow unless a massive backlash is taken against the industry.
FutureWith mobile and computer video games entering into the gambling fray, the gray area between gaming and gambling continues to grow. This is another area in which Israel’s tenuous relationship with gambling could grow.While some countries have expressed concern about this development, it represents a new frontier for gaming and gambling. And, it is one that future Israeli entrepreneurs may capitalize on in a big way. If history repeats itself, Israel will produce some of the industry titans.But, if Israel continues down the same path with its strict gambling laws, it will not fully benefit from this growth. Countries like Malta and Gibraltar will likely host these young Israelis and provide them a haven to become gambling giants.Israel will benefit from the growth of industries that work alongside gambling such as marketing and software, but the national lottery can only grow so much. Israeli gamblers are restricted to the lottery or taking a trip overseas to do their gambling in a physical casino.Of course, gambling is not part of Israeli culture as it is in other countries, however, there are many Israelis who would likely participate as the industry continues to spread into many areas of life. The Israeli government has not expressed much public interest in further legalizing gambling online or otherwise, so it is difficult to make any predictions when it comes to the future state of gambling in the country.However, it is safe to say that many Israelis have been at the forefront of industry change, and many Israeli workers benefit from gambling’s growth. Many marketers and software developers work on gambling projects, and gambling executives and founders have made millions in the last several decades.As previously mentioned, the mobile gaming industry is booming, and the latest and most impactful developments will likely come from the mobile gaming world. More and more gambling companies are moving into the mobile platform, and the next innovations to shake up the industry will likely take place on a mobile platform. Perhaps a new Israeli investor will be topping Forbes lists in the future after changing mobile gaming and gambling.As more Israelis are exposed to gambling whether it be working for a gambling company, or knowing someone who does, than the taboo surrounding gambling may start to diminish. Whether it remains taboo or not, the Israeli economy and therefore tax base and government are highly connected to gambling and the recent growth in the gambling industry. The future largely depends on how connected regulators and politicians want to be seen to gambling.