A general introduction to gambling law in Israel

Supreme Court of Israel ruled in October 2018 that poker is not a game of chance. The Ministry of Finance has issued a blanket permit for the conduct of promotional draws and sweepstakes. Businesses may conduct a promotional draw no more than twice per calendar year and at least 120 days apart. A 2017 amendment to the Securities Law severely restricts the involvement of Israelis in binary options trading. The Tel Aviv District Court ruled that trading in Binary Options is legal but not gambling. It has also been prohibited for Israeli licensed trading platforms to offer binary Options to Israeli retail customers.

'Prohibited game' is a game where the winner depends more on chance than on understanding or ability.

'Lottery' is an arrangement under which it is possible to win money, valuable consideration or a benefit more by chance than by understanding or ability.

'Betting' is an arrangement under which it is possible to win money, valuable consideration or benefit by guessing something. Lotteries based on sports matches and contests are an example of betting.

The National Lottery was established in 1951. The Israel Sports Betting Board was created in 1967. It has the exclusive right to organise and regulate sports betting in Israel. There are no laws regarding terrestrial gambling. Local authorities have no jurisdiction on gambling-related matters. Online gambling is regulated by law. Israeli courts have ruled that law applies to online gambling conducted by foreign operators. In 2018, the law was relied on to issue ISP blocking warrants against three offshore, online, gambling websites. The police tried to block access to a specific list of online sites in 2012, but the blocking orders were struck down by the Supreme Court.

The National Lottery was established in 1951. It offers several weekly draws, scratch cards, a weekly subscription lottery and various other lotteries and raffles. The operations of the NationalLottery are supervised and regulated by the Ministry of Finance. Israel Sports Betting Board was created in 1967. ISBB has the exclusive right to organise and regulate sports betting in Israel.

The main piece of legislation regulating gambling in Israel is Chapter 12 of the Penal Law. The only forms of regulated gambling are the National Lottery, regulated by the Ministry of Finance, and the ISBB, a self-regulating statutory corporation. Remote and land-based gambling is not regulated in Israeli law. Online gambling, except for the online betting services offered by IS BBB, is illegal under Israeli Law, but there are no set requirements for licensing or approval of individuals holding particular positions within a gambling operator.