THE REGULATION OF SPORTS BETTING IN ISRAEL
Introduction
Israel maintains one of the most restrictive gambling regimes in the world, permitting only the national lottery and state-controlled sports betting.
Yet, at the same time, it is home to some of the largest global online gambling technology companies, creating a striking regulatory paradox.
This Post outlines the legal framework, enforcement measures, and the unique position that Israel occupies in the international sports betting industry.
Legal Gambling
The following bodies regulate legal gambling in Israel.
The National Lottery (Mifal Hapais)
Established in 1951, it operates weekly draws, scratch cards, subscription lotteries and other raffles.
The Ministry of Finance supervises and regulates its operations.
The Israel Sports Betting Board (ISBB)
Created in 1967, under the Law for the Regularisation of Sports Betting, the ISBB holds the exclusive right to organise and regulate sports betting in Israel.
At present, its offerings are limited to football and basketball betting, as horse-race betting was discontinued in 2018.
Legal Framework
In general, gambling in Israel is subject to Chapter 12 of the Penal Law, which defines gambling and betting, sets out prohibitions, and specifies limited exemptions.
In particular, sports betting is subject to The Law for the Regularisation of Sports Betting 5727–1967, under which the ISBB operates.
As mentioned, the Ministry of Finance oversees the National Lottery, whilst the ISBB operates as a self-regulating statutory corporation.
Remote vs. Land-Based Gambling
Israeli law does not differentiate between remote and land-based gambling.
The Courts have interpreted the Penal Law as extending to online gambling.
Except for the National Lottery and sports betting, all land-based gambling is illegal in Israel.
As regards remote gambling, only the ISBB online betting is permitted. All other online gambling is prohibited.
Enforcement and Ancillary Issues
There is no general licensing regime in Israel, as commercial gambling is prohibited in Israel.
Payments
As regards payments, both legal operators only accept fiat currency, cryptocurrencies are excluded.
Territorial scope
Gambling regulation is national, and local authorities do not have any jurisdiction on gambling-related matters. In fact, attempts to allow Casinos to operate in Eilat have not progressed.
Offshore gambling
Israeli courts have ruled that foreign operators offering online gambling to Israeli players violate domestic law. Legal enforcement targets operators that actively market to Israelis, for example, by advertising to Israelis and using the Hebrew language.
To date, no legal enforcement action has been taken against foreign operators that do not have any presence in Israel and have not specifically targeted the Israeli market.
In 2012, the police attempted to order Israeli ISPs to block access to a specific list of online gambling sites and, following the ISPs’ appeal, the blocking orders were struck down by the Supreme Court in 2013 for lack of explicit legal authority.
However, a law empowering district court judges to issue orders aimed at preventing those in Israel from accessing websites offering online gambling services at the request of the police was passed in 2017. In 2018, the law was relied on for the first time by the Israeli courts to issue ISP blocking warrants against three offshore, online gambling websites.
Financial restrictions
The Central Bank of Israel, which regulates financial and credit institutions in Israel, has issued regulations imposing certain restrictions on financial transactions involving online gambling.
State Comptroller’s Report (2010)
Mention should be made of this Report, which highlighted the scale of illegal online gambling and urged stronger enforcement. The Report covered a broad spectrum of governmental agencies, and the State Comptroller urged Israeli enforcement authorities to implement the necessary measures to disrupt gambling-related transactions and block access to illegal gambling websites from within Israel.
Israel as a Global Gambling Tech Hub
Despite the strict domestic prohibitions on gambling in Israel, the country has emerged as a global powerhouse in gambling technology. Tel Aviv and Herzliya, in particular, host a thriving ecosystem of start-ups and established firms developing platforms for international markets.
Some of the most prominent names include Playtika, one of the world’s largest developers of social casino-style games listed on NASDAQ and 888 Holdings, originally founded in Israel and today a leading London-listed online betting operator.
As well as these giants, dozens of innovative start-ups and B2B suppliers are active in fields ranging from live dealer technology to payment processing.
These companies generally do not offer their products to Israeli residents, but their global reach underscores the paradox: whilst Israel prohibits commercial gambling within its borders, the country has become one of the most dynamic international hubs for gambling technology and online gaming innovation.
International Comparison and Outlook
Compared with many European jurisdictions, as mentioned, Israel maintains one of the most restrictive gambling regimes. Whereas countries, such as the United Kingdom, France, and Italy have introduced comprehensive frameworks to regulate online betting and gaming markets, Israel has consistently opted for prohibition except where the state retains direct control through the National Lottery and the ISBB.
Proposals to liberalise the market, for example, introducing Casinos in the resort city of Eilat, have surfaced, from time to time, but none have gained political traction.
Enforcement measures, particularly ISP blocking and financial transaction monitoring, are expected to expand in the coming years, reflecting the Israeli authorities’ determination to keep gambling tightly contained. For the foreseeable future, therefore, Israel is likely to remain an outlier, combining strict domestic prohibitions with global leadership in gambling technology exports.
Relevance for Sports Law and International Operators
For international sports organisations, betting operators, and technology providers, Israel presents a unique regulatory paradox. On the one hand, sports betting is confined to a state-controlled monopoly with little room for commercial participation. On the other hand, Israeli companies play a central role in shaping the global online gambling industry.
Understanding this dual framework is essential for stakeholders active in international sports law and compliance. Regulatory enforcement in Israel can affect offshore operators targeting Israeli players, whilst, at the same time, cooperation with Israeli technology providers has become increasingly important for the global gambling sector.
Such tension makes Israel both a restrictive jurisdiction and a crucial node in the international sports betting landscape.
We advise on all aspects of sports betting in Israel, and information may be obtained by emailing Kim Gamboni at gamboni@valloni.ch