Most gambling is prohibited; only state-controlled lottery and sports betting are permitted. Online gambling is illegal except for limited state offerings.
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Most gambling is illegal in Israel, with only state-controlled lottery and sports betting permitted.
The key legislation is the Israeli Penal Law 5737 (1977), which broadly bans games of chance.
Licenses are issued only for the National Lottery (Mifal HaPais) and certain sports betting via the ISBB.
Online gambling, including online casinos and poker, is prohibited except for limited state-run betting.
No private or foreign operators can obtain a gambling license; all legal gambling is state-monopolized.
Taxation applies to winnings from the legal lottery and sports betting, with rates set by the Ministry of Finance.
Social gaming without monetary prizes is generally permitted, but real-money games are strictly banned.
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Legislation
Primary Legislation
The legal framework governing gambling in Israel is primarily established by the Israeli Penal Law 5737-1977, specifically Chapter 12. This chapter imposes a general prohibition on all forms of gambling, including lotteries, betting, and games of chance, with only a few narrowly defined exceptions. The key statutory exceptions are:
The National Lottery (Mifal HaPais), which operates under a permit issued by the Ministry of Finance.
Sports betting activities organized by the Israel Sports Betting Board (ISBB), also under state control.
A limited scope of “social gaming,” which is not considered gambling if played solely for entertainment within a fixed group and without monetary rewards.
Online gambling is also covered by these prohibitions, with the same exceptions applying. All other forms of land-based and online gambling are illegal under Israeli law.
Regulatory Authority
Oversight and regulation of permitted gambling activities in Israel are carried out by designated state authorities. The main regulatory bodies are:
The Ministry of Finance, which holds the authority to issue permits for the operation of the National Lottery and oversees its activities.
The Israel Sports Betting Board (ISBB), responsible for regulating and managing state-sanctioned sports betting activities.
These authorities ensure compliance with the legal framework and enforce the prohibitions and exceptions established by Israeli law.
License Types
Types of Gambling Licenses Available in Israel
Israel maintains a highly restrictive gambling licensing system. Only two main types of state-controlled licenses exist:
National Lottery License: Granted exclusively to Mifal HaPais, the state lottery operator. This license covers all lottery activities, including instant games and draws.
Sports Betting License: Granted solely to the Israel Sports Betting Board (ISBB). This license permits the organization and operation of betting on sports events, primarily football and basketball.
No other gambling licenses are available for private or commercial operators. Casino gaming, poker, slot machines, and most forms of online gambling are not licensed or permitted under Israeli law.
Application Process and Eligibility
The licensing process is not open to the general public or private entities. Licenses are granted directly by the Israeli government through the Ministry of Finance to the designated state monopolies (Mifal HaPais and ISBB).
There is no formal or competitive application process for new operators. The existing licensees were established by government decision and operate under exclusive mandates.
Eligibility is limited to state-approved bodies. Private companies, individuals, and foreign operators are not eligible to apply for or obtain gambling licenses in Israel.
Duration, Renewal Conditions, and Maintenance
Licenses for the National Lottery and Sports Betting are issued for fixed terms as determined by the government, often through specific legislation or government resolutions.
Renewal is subject to government review and approval. The terms and conditions for renewal are set by the Ministry of Finance and are not publicly available for open application.
Licensees must comply with strict operational, financial, and reporting requirements as set by their respective agreements with the government.
Licensing Costs, Fees, and Financial Requirements
There is no published fee schedule or application cost for gambling licenses, as the system is not open to new applicants.
The state monopolies are subject to financial oversight, including requirements to allocate proceeds to public and charitable causes, but these are set by government agreements rather than a standard licensing fee structure.
Operational costs, revenue allocations, and financial guarantees are determined through the agreements between the government and the state operators, not through a public licensing process.
Key Requirements for Obtaining and Maintaining Licenses
Only the designated state entities (Mifal HaPais and ISBB) may hold gambling licenses.
Licensees must adhere to government-mandated rules regarding responsible gambling, advertising, reporting, and the allocation of profits.
Regular audits and financial disclosures are required to ensure compliance with the terms of the license.
Any expansion or modification of gambling activities requires government approval and, in some cases, legislative changes.
Summary Table: Gambling Licensing in Israel
Type of License
Eligible Entities
Application Process
Duration & Renewal
Fees
Key Requirements
National Lottery
Mifal HaPais (state monopoly)
Not open to public; granted by government
Fixed term, subject to renewal by government
Not published; set by government agreement
Strict compliance, audits, public benefit allocation
Sports Betting
Israel Sports Betting Board (ISBB)
Not open to public; granted by government
Fixed term, subject to renewal by government
Not published; set by government agreement
Strict compliance, audits, public benefit allocation
No other gambling licenses are issued or available in Israel. The system is strictly limited to these two state-controlled entities, with no pathway for private or foreign operators to obtain a gambling license.
Gambling Tax
Tax Rates for Gambling Operators in Israel
Gambling operations in Israel are strictly limited to state-controlled entities. The two primary legal operators are:
The National Lottery (Mifal HaPais)
The Israel Sports Betting Board (ISBB)
Private or commercial gambling operators are not permitted, so the taxation system applies exclusively to these state-sanctioned bodies.
Type of Gambling Operation
Tax Rate
Basis for Taxation
National Lottery (Mifal HaPais)
Variable (set by Ministry of Finance)
Gross Gaming Revenue (GGR)
Sports Betting (ISBB)
Variable (set by Ministry of Finance)
Gross Gaming Revenue (GGR)
The Ministry of Finance determines the specific tax rates and financial obligations for these entities. The tax is generally calculated based on Gross Gaming Revenue (GGR), which is the total amount wagered minus winnings paid out.
Tax Reporting and Payment Procedures
The National Lottery and ISBB are required to submit regular financial reports to the Ministry of Finance.
Tax payments are typically made on a monthly or quarterly basis, as stipulated in the terms of their operating permits.
Detailed accounting and auditing standards are imposed to ensure transparency and accuracy in reporting GGR and tax liabilities.
All tax payments must be made directly to the state treasury according to the schedule and procedures set by the Ministry of Finance.
Tax Incentives, Exemptions, and Special Provisions
There are no general tax incentives or exemptions for gambling operators, as only state-controlled entities are permitted to operate.
Any changes to tax rates, exemptions, or special provisions are determined solely by the Ministry of Finance and are subject to periodic review.
There are no provisions for private operators, as commercial gambling licenses are not issued in Israel.
In summary, Israel’s gambling taxation system is highly centralized and applies only to the National Lottery and ISBB, with tax rates and procedures set and reviewed by the Ministry of Finance. All taxes are based on Gross Gaming Revenue, and there are no incentives or exemptions beyond what is specifically determined by the government for these state entities.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for participation in permitted gambling activities, such as the National Lottery and state-licensed sports betting, is 18 years old.
Operators are required to verify the age and identity of participants to prevent minors from accessing gambling services. This involves mandatory identification checks at the point of sale and for prize collection.
Prohibited Types of Gambling Activities and Game Restrictions
All forms of gambling are prohibited in Israel except for the National Lottery (Mifal HaPais), certain state-controlled sports betting activities organized by the Israel Sports Betting Board (ISBB), and a very limited scope of social gaming where no profit is made by the organizer.
Online gambling, including online casinos, poker, and unlicensed betting, is strictly forbidden for both operators and players, regardless of whether the service is based in Israel or abroad.
Land-based casinos, slot machines, private betting shops, and any other unauthorized gambling establishments are illegal.
Games that combine elements of skill and chance are generally presumed illegal unless specifically authorized, with courts applying a predominance test and considering social utility in rare cases.
Advertising and Marketing Limitations
Advertising for unauthorized gambling activities is strictly prohibited.
Permitted operators, such as the National Lottery and ISBB, face strict limitations on advertising content and placement to avoid targeting minors or vulnerable populations.
Marketing materials must not suggest gambling as a solution to financial problems or promote excessive play.
There are restrictions on the use of celebrities, youth-oriented media, and misleading claims in gambling advertisements.
Responsible Gambling Requirements and Player Protection Measures
Permitted operators are required to implement responsible gambling measures, including providing clear information about the risks of gambling and available help resources.
Operators must display warnings about the potential for addiction and provide access to support services for problem gamblers.
Self-exclusion programs and limits on participation may be available for players seeking to control their gambling behavior.
Prize collection procedures include additional identification checks and may involve counseling or information about responsible gambling for significant wins.
Geographic and Location Restrictions
Land-based gambling is only allowed at authorized locations operated by the National Lottery or ISBB; there are no legal casinos or private gambling venues in Israel.
Gambling activities outside these authorized venues, including informal or private settings, are illegal and subject to enforcement.
Online gambling is not permitted for Israeli residents, regardless of the geographic location of the operator.
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Timeline
Year/Date
Event
1948
Establishment of the State of Israel; existing British Mandate laws continue to apply, including restrictions on gambling.
1951
Mifal HaPais, the Israeli National Lottery, is established by government permit, marking the first legal form of gambling in Israel.
1967
Israel Sports Betting Board (ISBB) is founded, legalizing and regulating state-controlled sports betting.
1977
Israeli Penal Law 5737 is enacted, imposing a blanket ban on most forms of gambling, with exceptions for the National Lottery and state-regulated sports betting.
2005
Amendments to the Penal Law further clarify and reinforce restrictions on online gambling, explicitly prohibiting most online games of chance.
2017
Israeli authorities intensify enforcement against illegal online gambling, including blocking access to unauthorized gambling websites.
2024
Ongoing strict enforcement of existing laws; only the National Lottery, state-controlled sports betting, and limited social gaming remain legal.
Requirements
Software Certification and Technical Standards Requirements
Only state-controlled operators—the National Lottery (Mifal HaPais) and the Israel Sports Betting Board (ISBB)—are permitted to offer gambling services in Israel. These operators must ensure that all gaming software and systems comply with strict technical standards set by the relevant government authorities.
Gaming systems and software must undergo rigorous certification and testing to verify fairness, randomness, and integrity. Certification is typically conducted by approved independent testing laboratories.
All technical components, including random number generators (RNGs), must be demonstrably secure and tamper-proof, with regular audits to ensure ongoing compliance.
Operators are required to implement robust technical controls to prevent unauthorized access, manipulation, or interference with gaming systems.
Data Protection, Privacy Measures, and Server Location Requirements
Operators must comply with Israeli data protection laws, ensuring the confidentiality and integrity of all customer and transaction data.
Personal data must be securely stored, encrypted, and protected against unauthorized access or breaches.
Data retention policies must align with national legal requirements, specifying the duration and manner of data storage.
Gaming servers and databases are generally required to be physically located within Israel or in secure jurisdictions approved by the relevant authorities, to ensure regulatory oversight and data security.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators must implement comprehensive AML programs, including customer due diligence, transaction monitoring, and reporting of suspicious activities.
KYC procedures require the verification of player identity, age, and source of funds before allowing participation in gambling activities.
Operators must maintain detailed records of all customer identification and verification processes, and update KYC information periodically.
Automated systems must be in place to flag and report unusual or potentially illicit financial transactions to the appropriate regulatory bodies.
Financial Reporting, Auditing Standards, and Record-Keeping Requirements
Operators are obligated to maintain accurate and up-to-date financial records, including all transactions, bets, payouts, and player balances.
Regular internal and external audits of financial systems and records are mandatory, following standards set by Israeli financial regulators.
All financial data and transaction logs must be securely stored and readily accessible for inspection by regulatory authorities for a prescribed period.
Operators must submit periodic financial and operational reports to the relevant government agencies, ensuring transparency and accountability.
Technical Implementation Requirements for Responsible Gambling Tools
Operators must integrate technical features that promote responsible gambling, such as self-exclusion tools, deposit limits, and session time reminders.
Systems must allow players to set personal limits and self-exclude, with technical mechanisms ensuring these restrictions are enforced across all platforms.
Operators are required to provide real-time access to responsible gambling resources and support, both online and at physical points of sale.
Technical monitoring tools must detect and intervene in cases of problematic gambling behavior, with mandatory reporting to relevant authorities where necessary.
Sources
Primary Regulatory Authorities
Ministry of Finance – Official government body responsible for licensing and oversight of state-controlled gambling activities
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
