Many people wonder about the laws and regulations for gambling in Israel. In fact, this country is one of the few in the world that significantly regulates the practice.
After gaining its independence in 1948, the Israeli government prohibited all forms of betting. As time went on, though, it made various exceptions. This allowed the population to participate legally in different wagering activities.
Today, the Israeli gambling industry operates using a unique legal framework that stands out globally because it’s stricter than most other countries use.
While each country has its own rules, Israel’s laws are different than most found globally. It’s important to understand the regulations to ensure that you’re not doing anything illegal if you live in or travel to this area and enjoy gambling. Let’s learn more.
Gambling in Israel
The gambling industry’s legal structure in Israel is outlined in its Penal Law (5737-1977). This imposes a ban on all types of wagering, except for sports betting and lotteries. Does that mean playing online casino games will get you into trouble? Continue reading to find out.
Here is a rundown of the various gambling sectors and their legality according to Israeli law:
The Lottery
Israel does allow its citizens to lawfully participate in the country’s national lottery. There are many games available, such as scratch cards, bingo, and keno.
However, there are conditions involved. For example, the activities must be conducted by Mifal Hapayis, which is the national lottery body and is owned by the Ministry of Finance.
Because Israel legalized scratch cards, keno, bingo, and other lottery games, the doors have been opened to other gambling options. Still, there is a long way to go.
Sports Betting
Sports betting is completely legal in Israel. The ISBB (Israel Sports Betting Board) regulates this sector, which is a state-owned organization. While the Ministry of Finance empowers it, this agency has created the rules currently in place.
In the past, citizens were only allowed to gamble on international soccer and basketball games. However, the government agency added horse race betting for a brief period. Then, it announced a ban on that. This move cost millions of Shekels in losses for the industry.
Currently, Israel doesn’t allow betting on blood sports or horse racing, though soccer and basketball are available.
Casino Gambling (In-House)
It’s important to understand that Israel doesn’t allow casino gambling. Those establishments aren’t authorized in the country because wagering has never been decriminalized.
Government officials have talked about legalizing casinos in Israel. However, the discussions never created change.
You’ve probably never heard of famous casino establishments in Israel; it’s because they are technically illegal.
Online Casino Gambling in Israel
Online casinos are also prohibited. Still, the players aren’t prosecuted for using offshore gambling websites to play games. This does mean that they must go abroad when they want to enjoy baccarat, roulette, or blackjack.
Ultimately, creating a website that offers online gambling with slot machines and poker in Israel is illegal. However, many companies have done this. Since the players themselves don’t get into trouble for enjoying the site, they will play wherever they can.
Loopholes Involved
Because sports betting is legal in Israel, many websites promoting this type of gambling are available. When visiting those sites, it’s easy to find casino-style games. Generally, you must first speak with an agent to determine what you need or want. Then, you’ll be asked to create a profile and add funds, usually through a smartphone app.
It’s often easier to use an online casino app or website because you can play at home or while you’re running errands. These sites are readily available and accessible.
Legal Gambling Age for Those in Israel
In general, people 18 years of age or older can place bets on sporting events or play in lottery draws from the National Lottery.
Typically, children and teenagers aren’t responsible enough to handle gambling in any form. They haven’t gotten control of their emotions and might lose significant amounts of their parents’ money.
While some parents will purchase a scratch card, letting the child play, they are responsible for buying and turning everything in if they win.
Website owners are aware of the age restriction. Usually, you must check a box that indicates you’re 18+ years old. Likewise, you may have to keep a credit card on file with your name on it to show that you’re an adult.
Taxation on Gambling Winnings in Israel
In Israel, the government taxes gamblers on their winnings. If you enjoy sports betting or state-run bingo games and lotteries, you are subject to taxation.
The latest amendment to the gambling tax law was set in January 2023. Now, any winnings you receive above NIS 32,760 to NIS 65,250 use the incremental tax rate.
If your winnings are over NIS 65,250, you’re subjected to a withholding tax of 35 percent. Typically, the taxes are deducted before you receive the funds. This ensures that the government gets its share and reduces the risk of tax fraud.
Gambling Licenses – Which Agencies Are Involved?
Ultimately, the Ministry of Finance regulates the gambling industry and will issue licenses to appropriate organizations and bodies.
For example, the Ministry of Finance licenses the ISBB (Israel Sports Betting Board) and Mifal Hapayis, which is the state-owned organization overseeing bingo, keno, scratch cards, and lottery gambling activities. The latter also holds various contests throughout the year, including the Mifal Hapayis Literature Competition to help people learn about the Hebrew language.
It’s also important to understand that the Israeli government doesn’t have a legal framework in place to govern offshore companies and their licensure needs. Foreign entities cannot obtain local gambling licenses that allow them to operate in this country.
The Future of Gambling in Israel
Online gambling is highly popular throughout the world, and many people enjoy playing casino games from the comfort of home. However, Israel is somewhat behind the times.
Israel’s gambling legislation has been amended in the past. Still, the only legal options are sports betting and lotteries, such as keno, scratch cards, and bingo. This leaves so many other fun games out.
Because the online and in-house casino industry is booming in other parts of the world, the Israeli government might consider opening up to more gambling opportunities.
In 2019, a bill was brought before the Israeli Parliament asking to regulate real-money poker tournaments. It’s still pending, so this is considered illegal. Ultimately, it seems that the country is dragging its heels and offers a more conservative approach to casino games.
Will You Get in Trouble for Gambling in Israel?
While some forms of gambling are legal, online slot games aren’t. You can still enjoy them and aren’t likely to get into trouble. The Israeli government might go after the website owner and other parties, not the player.
Final Thoughts on the Laws and Regulations for Gambling in Israel
Even though most forms of gambling are prohibited in Israel, it still offers sports betting and lotteries. Therefore, it’s possible to enjoy this hobby from the comfort of your home.
Online sports betting is becoming highly popular in Israel because it’s legal and won’t get anyone into trouble, including the website owner. If you’re ready to wager on your favorite teams, bet365 is here to help. Talk to an agent to get started today.
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