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Gambling and online casinos in Israel
Israel is a country with a unique combination of strict legislation, religious traditions and a modern digital economy.
Although the state officially bans most forms of gambling, including online casinos, the gaming industry exists in a "regulated shadow" - under state control and through offshore venues.
The legislation is based on the principles of ethics and morality inherited from British mandate law and Judaic norms, but Israel does not turn a blind eye to the potential of gambling entertainment in the field of taxes, sports and charity lotteries.
Historical and legal context
Gambling in Israel was banned during the British Mandate (until 1948) and this norm passed into the modern legal system.
The main law governing gambling is the "Lottery and Betting Act" (1964), which allows only two forms of gambling under state control.
Allowed:1. National Lottery "Mifal HaPais" - licensed by the government, part of the profits goes to finance hospitals, schools and infrastructure.
2. Toto Sports Betting Board (Israel Sports Betting Board) - regulated by the Ministry of Finance and intended exclusively for legal sports betting.
All other forms of gambling - including casinos, slot machines and online gambling - are banned.
Legislation
Key regulations:1. Penal Law (1977), s. 224-229 - a complete ban on gambling and its organization.
2. Gambling Prohibition Act - determines that any games that depend on the case are considered illegal.
3. Communications Law (2001) - allows you to block sites of online casinos and illegal bookmakers.
4. Lottery and Betting Regulation (1964) - establishes the monopoly of Mifal HaPais and Toto.
Main provisions:- casinos and slot machines are prohibited;
- online casinos and poker are illegal;
- only state lotteries and sports betting are allowed;
- advertising illegal gambling is prohibited under the threat of a fine;
- participation in foreign casinos is not directly punishable, but bank transfers are blocked.
Public sector gambling
National Lottery "Mifal HaPais"
Created in 1951 and is the largest gambling organization in the country.
Funds are directed to:- construction of hospitals, schools and sports facilities;
- social programs and support for veterans;
- municipal projects.
- Lotto, Chish Gad, 777, Daily Draws.
The annual turnover of Mifal HaPais is about 6 billion shekels (≈ $1.6 billion), of which more than 60% are returned to players in the form of prizes.
Israel Sports Betting Board (Toto)
Official sports betting operator controlled by the Ministry of Sports.
Allows you to bet only on real sporting events (football, basketball, tennis).
Since 2017, the toto platform. co. il is the only legal online betting platform in Israel.
Online gambling
Officially, online casinos and poker are prohibited.
The Justice Department and Internet providers are blocking hundreds of gambling-related domains,
and financial institutions are required to reject transactions in favor of offshore casinos.
However, experts estimate that more than 200,000 Israelis regularly use offshore sites:- Stake, 1xBet, Bet365, PokerStars, LeoVegas, 888Casino - especially popular among players using VPN;
- cryptocurrency casinos (BTC, USDT, ETH) allow you to bypass banking bans;
- Telegram groups and Facebook communities distribute links to site mirrors.
According to a report by Globes (2024), the total amount of illegal online gambling in Israel is estimated at 3.5-4 billion shekels per year ($1 billion).
Responsible play and supervision
Control is performed by:- Ministry of Finance - licenses and audits of "Mifal HaPais" and Toto;
- Ministry of Communications - blocking illegal sites;
- Israel National Police - fighting underground casinos;
- Anti-Gambling Task Force is a special unit for combating money laundering and cybercasino.
- rate caps;
- prohibition of participation by persons under 18 years of age;
- counseling and hotlines for addicted players.
Court cases
In 2019, the Israeli Supreme Court ruled that online poker is a form of gambling, not sports, thereby confirming its illegality.
However, in 2023, several Knesset members proposed legalizing online gambling in tourist areas,
which caused public disputes between secular and religious parties.
Economic aspect
Israel loses hundreds of millions of shekels annually due to illegal gambling.
Supporters of the reform believe that the legalization of online gambling would allow:- increase the budget by 1-1.5 billion shekels per year;
- Create jobs and monitor payments
- protect players from fraud.
Opponents argue that this will undermine morality and lead to an increase in gambling addiction.
Prospects
Israel is moving toward pragmatic liberalization, especially in the digital sector.
It is expected that in the future, the following may be allowed:- limited online licenses for international operators;
- tourist casino zones in Eilat or near the Dead Sea;
- regulated poker and fantasy sports under state control.
However, religious and political factors remain a key barrier.
Israel is a country of strict prohibitions, but a flexible approach.
Casinos and online gambling are prohibited by law,- however, the state itself manages the largest lotteries and sports betting,
which makes the market partially regulated but officially closed.
Formally prohibited, but actually exists - under control, through VPNs and cryptocurrencies.
- where the state will take control of online gambling,
turning it from a shadow into a source of public benefit and budget.
