Israel looks into UK gambling laws

online gambling

It is easy to become confused when trying to understand the gambling laws of Israel.

Israel Penal Law 5737 of 1977 places a ban on gambling, but it is not specific enough to accommodate the developments in the modern gambling industry. Particularly, the law does not mention online gambling, which is as prevalent as any gambling activity in today’s world. In times like this, it is usually at the discretion of the authorities whether they allow this form of gambling in the country or not.

Similarly to what has been a big problem for Norwegian regulators, there is no direct way for the authorities to stop internationally licensed online gambling websites from providing their services.

Instead, in 2005, when the Israeli Attorney General decided to crack down on online gambling, the regulators introduced a law that penalized the financial institutions and credit card companies that processed transactions for these providers.

Online gambling websites that had servers in Israel were banned as well. To add to the confusion, even though the government is taking a stern stance when it comes to gambling, not all forms of it are banned. For example, it is still perfectly legal to participate in sports betting or lotteries.

As written on www.casinopånett.eu, the ban on gambling along with a confusing environment for gambling providers to operate in has resulted in the well-known downside of bans in general, i.e. the emergence of underground markets.

Currently, there are virtually no legal casinos with physical branches in Israel, but much like everywhere else, there are people who want to experience a poker game or bet on a roulette in real life.

For these people, illegal casinos have started to spring up and offer their services. This is usually a standard process when there is a ban on products with high demand. It is what is making many European countries rethink their stance on gambling regulations and it is what made Britain lift the ban on gambling.

Will Israel follow in the footsteps of the UK when it comes to gambling regulations?

The downside of having an underground market is that the activities that are meant to be prohibited are still happening, but the authorities are not able to tax the profits of these companies.

Britain was able to identify this problem and now the government generates several hundred million pounds of revenue from the taxation of gambling activities.

Furthermore, in 2010, the gambling industry made over 6 billion pounds, which then accounted for almost 0.5% of the national GDP. The industry employs over 100,000 people as well. This should prove an incentive enough for any country as clearly the liberalization of the gambling market is beneficial for the economic growth.

Only time can show if Israel chooses to follow the example of the UK, from which it adopted the gambling laws in the first place, and lift the ban on gambling. Currently, the industry is operating in a confusing environment as the authorities are having a hard time dealing with the online gambling providers.

Source: https://casinopånett.eu/nyheter/israel-ser-naermere-pa-britiske-gamblinglover/

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