Online casino gambling is strictly prohibited in Israel under the country's comprehensive gambling ban established by the Israeli Penal Law 5737-1977 (1)(2). The legislation categorically prohibits all forms of gambling, including lotteries, betting, and games of chance, with Israeli courts explicitly classifying casino games, bingo, and poker as prohibited activities. The only legal exceptions to this blanket ban are the National Lottery (Mifal Hapayis), sports betting services operated by the state-owned Israel Sports Betting Board (ISBB), and very limited social gambling activities that meet specific restrictive conditions.
Israeli authorities have consistently interpreted the general gambling prohibition to extend to online gambling activities, despite the Penal Law not specifically referencing internet-based gambling when it was enacted in the 1970s (1)(2). The Israeli Police, in cooperation with the Ministry of Justice, Ministry of Finance, Bank of Israel, and Anti-Money Laundering Authority, actively enforce these prohibitions through various measures including court injunctions blocking access to gambling websites, ISP restrictions, and financial transaction monitoring. The Bank of Israel has issued regulations specifically restricting financial transactions involving online gambling to prevent money flow to illegal operators.
"Israeli courts and various governmental authorities have indicated that the general ban on gambling activities in Israel applies to online gambling as well."
Despite the strict legal framework, enforcement challenges persist as Israeli residents continue to access offshore gambling sites, contributing to an underground gambling market estimated at over $3.5 billion annually (2). Penalties for violating gambling laws include imprisonment of up to three years and substantial fines, with the law applying to both operators and participants. Israel's conservative approach to gambling regulation is rooted in religious and cultural values, and various governmental proposals to liberalize gambling laws, including casino resorts in Eilat, have failed to gain meaningful traction over the years.
Source:
https://iclg.com/practice-areas/gambling-laws-and-regulations/israel
https://www.lexology.com/library/detail.aspx?g=6c19022d-0f03-4d69-89cc-27ffe064dd3e
Last updated: 20-07-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
