Published on 29/02/2024 by Author: Talma Gotteiner

Israel is one of the few nations where gambling is highly regulated. After gaining independence in 1948, all forms of betting were prohibited. However, as time went by, exceptions were made, with the population being allowed to participate lawfully in several wagering activities. Today, the gambling industry in the country operates within a unique legal framework that stands out not only in Asia but globally. To understand better how Israel's laws compare to those of other countries, you can consult the detailed guides provided by Top10DesCasinos. You can learn all about the global legal landscape of gambling and the complexity of the industry across different nations. In this article, we'll explore which forms of gambling are legal and which ones are restricted by the state of Israel.

Gambling in Israel

The legal structure of the Israeli gambling industry is outlined in the Penal Law (5737-1977), which imposes a general ban on all forms of gambling except lotteries and sports betting. Here is a rundown of different sectors and their legality according to the current Israeli gambling laws.

Sports Betting

Sports betting is legal in Israel. This sector is regulated by the Israel Sports Betting Board or ISBB, a state-owned organization empowered by the Ministry of Finance. At first, citizens could only gamble on internal basketball and soccer games. Later, they added horse racing betting which was short-lived as the government announced the ban on horse racing betting, a move that cost the industry millions of Shekels. In addition to banning horse racing, Israel does not allow any form of blood sport, nor do they permit citizens to bet on such games.

Lottery

Israel allows citizens to lawfully participate in the national lottery. Some of the lottery games Israelis can play include:

• Bingo
• Keno
• Scratch Cards

This is, however, on the condition that the activities are conducted by Mifal Hapayis, the national lottery body owned by the Israel Ministry of Finance. The legalization of lottery, keno, scratch cards, and bingo has helped open doors to other gambling possibilities.

Casino Gambling

Israel does not allow casino gambling. Casino establishments are not authorized and have never been decriminalized in the country. There were once talks of legalizing casinos, but the dialogues never bore any fruit. This explains why there are no famous casino establishments in the nation. Online casinos, on the other hand, are prohibited, but players are not prosecuted for playing the games on offshore gambling sites. With stringent rules governing casino gaming, Israeli players have no option but to travel abroad whenever they want to play their favorite blackjack, roulette, and baccarat games.

Online Gambling

Online gambling is illegal in Israel. Despite being one of the most popular forms of gambling, Israel has yet to decriminalize this betting activity. But then, since playing online casino games, like slot machines, blackjack, and poker games, at foreign sites is not punishable by law, a majority of citizens play games online both at home or on the move when visiting Jerusalem parks and gardens and other places. After all, the websites are readily accessible to Israelis. Another key aspect to note is that foreigners can gamble online while in Israel without any restrictions whatsoever.

What Is the Legal Gambling Age in Israel

The Israeli government does not allow every citizen to participate in any form of gambling. In this regard, only individuals aged 18 years and over can place bets or participate in lottery draws offered by the National Lottery. This is one of the ways the government guarantees responsible gambling among citizens. With that in mind, anyone below the legal age cannot place bets or participate in any lottery draws. They are also not allowed to play keno, scratch cards, or bingo games.

Does Israel Tax Gambling Winnings?

The Israeli government taxes gamblers. All winnings generated from sports bets to state-run lotteries and bingo games are subject to taxation. In January 2023, the gambling tax law was amended. It now states that any winnings above NIS 32,760 to NIS 65,250 are subject to an incremental tax rate. On the other hand, winnings above NIS 65,250 are subject to a withholding tax of 35%. The tax amount is deducted from the winnings right before it is disbursed to the winner's account.

Who Is In Charge of Issuing Gambling Licenses?

The Ministry of Finance is in charge of regulating the industry, not to mention issuing gambling licenses to relevant bodies/organizations. For instance, it licenses the Israel Sports Betting Board or ISBB, which regulates sports betting, as well as Mifal Hapayis. This state-owned organization oversees lottery, scratch cards, keno, and bingo gambling activities in Israel. In addition to the national lottery, Mifal Hapayis also holds other contests such as the Mifal Hapayis literature competition which is tailored to advance the Hebrew literature of skilled Israeli writers. You should, however, note that there is no legal framework that governs the licensing of offshore companies. A foreign entity can't obtain a local gambling license that will enable it to operate in Israel.

The Future of The Israel Gambling Industry

Online gambling in Israel has a bright future, and this is seen from the multiple amendments made to the gambling legislation. With the ever-growing market size of the casino and online casino industry, there are chances that the government may consider regulating the sector. In 2019, a private member bill was brought before the Knesset (Israeli Parliament) seeking to regulate real-cash poker tournaments. The bill, however, remains pending. Even so, it is key to note that Israel has a conservative approach towards gambling. This will hinder the rapid growth of the industry and slow down any bills that would have catalyzed its complete transition.

Overview of the Gambling Laws in Israel

Israel has a vibrant gambling scene despite the fact that most forms of gambling are prohibited apart from sports betting and lottery. The entire Israeli gambling scene is overseen by the Ministry of Finance, which delegates regulatory duties to the Israel Sports Betting Board and Mifal Hapayis. To place any bets or participate in the lottery draws, you must be 18 years old and above. Israeli law also requires you to remit taxes in case of any winnings accrued while gambling.