Online gambling in Israel: regulation, licence and market guide

Is online gambling legal in Israel?

The Penal Law 5737-1977 prohibits organizing or playing any prohibited game, lottery or bet. The only exceptions are Mifal HaPais, which runs lotteries and scratch cards under a Ministry of Finance permit valid until 31 December 2026, and the Israel Sports Betting Board (ISBB), a statutory body that offers sports betting under the Winner brand, including online. Courts have held that foreign sites serving people in Israel breach the same law, and since 2018 district courts have ordered ISPs to block gambling domains. There is no licence for private operators and no reform on the horizon.

State monopoly: A state or single licensee runs online gambling; private operators cannot be licensed.

Who regulates gambling in Israel?

• Ministry of Finance (MoF) — Issues and supervises the National Lottery permit under Section 231 of the Penal Law and co-supervises the ISBB
• Israel Sports Betting Board (Toto Winner) (ISBB) — Statutory body under the Law for the Regularisation of Sports Betting 1967 with the exclusive right to organize sports betting, online and retail
• Mifal HaPais (National Lottery) (Mifal HaPais) — State-owned lottery operating lotteries, subscriptions and scratch cards under a renewable Ministry of Finance permit

Israel gambling licence: how it works

There is no Israel gambling licence for private companies. Permits under Chapter 12 of the Penal Law are granted only to Mifal HaPais, whose current permit runs from 1 May 2022 to 31 December 2026, and the ISBB, whose authority is statutory and open-ended. The ISBB may sell sports betting online; Mifal HaPais has not been permitted to sell its products online. Private lottery messenger services exist, but the Supreme Court's ruling in Mifal Hapayis v. Lottonet left their legality in question. The Ministry of Finance has used its powers to narrow the monopolies, revoking Mifal HaPais's video lottery terminals in 2017 and the ISBB's horse-race wagering in 2018.

What an applicant needs

• Permits are available only to the two state bodies named in the Penal Law and the 1967 sports betting law
• Mifal HaPais must fund gambling research (ILS 0.5 million a year), addiction treatment (ILS 3 million) and responsible-gaming education (3.5% of advertising spend)
• Both bodies must appoint an AML officer and verify identity before paying prizes above set thresholds
• Sales to minors under 18 are prohibited for all permitted products

Gambling taxes in Israel

• Operators: The state bodies transfer surpluses to public purposes under their permits rather than paying a licence tax; no operator gambling tax regime exists for private companies because none may operate.
• Players: 35% income tax on gambling, lottery and prize winnings above the exemption: winnings up to ILS 33,840 are exempt, a partial exemption applies up to ILS 67,680, and everything above is fully taxable (amounts adjusted from January 2024).
• Also: The Supreme Court remarked in Amit Amishvili Rafi v. Assessing Officer that poker should not be seen as a pure game of chance, but this obiter has not changed the Penal Law position.

Advertising, player protection, KYC and payments

Advertising

Only Mifal HaPais and the ISBB may advertise. Their permits ban TV and radio advertising between 1pm and 7pm (the ISBB may advertise during sports broadcasts), ban advertising in children's media, schools and arts venues, and ban commercials that encourage the public to gamble. Publishing an announcement about an unlawful lottery or bet is itself an offense carrying up to one year in prison or a fine of ILS 150,600.

Responsible gaming

Permit conditions oblige the state bodies to fund research, treatment and education, run a code of ethics based on World Lottery Association and European Lotteries principles and operate a public helpline; sales to under-18s are prohibited.

Identity and age verification

The Prohibition on Money Laundering Law 5760-2000 applies to both bodies; identity must be recorded and verified before participation cards are issued for prizes above a set threshold, and the ISBB's terms block participation from abroad.

Payments

The Bank of Israel has prohibited Israeli financial institutions from transmitting funds for gambling since 2020 instructions tightened monitoring and blocking of such transactions. Only the two state bodies can lawfully receive gambling payments from Israeli residents.

Notable restrictions

• Organizing a prohibited game, lottery or bet: up to three years in prison or a fine of ILS 452,000
• Playing a prohibited game: up to one year in prison or a fine of ILS 29,200
• Court-ordered ISP blocking of gambling websites under the 2017 website-blocking law, first used in October 2018
• Mifal HaPais may not sell online; video lottery terminals and Keno were discontinued in 2017
• Horse-race wagering was discontinued in 2018

Israel iGaming market: size, players and payments

No reliable public estimate of an online market exists because only the two state bodies may operate; their turnover is published in their annual reports.

Winner sells through its website and apps; Mifal HaPais products are sold at retail only.

Two state bodies and no private competition; enforcement focuses on unlicensed venues and online operators, with a network of private lottery messenger services of contested legality.

Timeline: how Israel got here

1. 1951Mifal HaPais established as the national lottery
2. 1967Law for the Regularisation of Sports Betting creates the ISBB with exclusive sports betting rights
3. 1977Penal Law 5737-1977 consolidates the ban on prohibited games, lotteries and betting
4. 2013Supreme Court strikes down police ISP-blocking orders for lack of statutory authority
5. 2017Website-blocking law enacted; Ministry of Finance revokes Mifal HaPais's video lottery terminal permit
6. 2018-10First court-ordered blocks of gambling websites; horse-race wagering discontinued
7. 2022-05Current Mifal HaPais permit begins, running to 31 December 2026
8. 2022-12Private member's bill to permit real-money poker tournaments introduced; not advanced

Outlook

The Mifal HaPais permit expires on 31 December 2026 and a renewal decision by the Ministry of Finance is the main event to watch; renewals have been used to trim products rather than expand them. The 2022 poker bill remained stalled as of the ICLG 2026 review and Knesset members rarely propose gambling reform, so no private licensing is expected. Enforcement against unlicensed online operators, payment channels and advertisers continues.

GameBridge and Israel

Not served by GameBridge. Israel permits only two state bodies, applies its criminal ban to foreign online operators and blocks sites and payments, so GameBridge brands exclude Israel by default and this page exists so compliance teams can verify the position quickly.

Israel is on the default exclusion list of every GameBridge brand: geo-controls block Israeli IP ranges and registrations, Israeli identity documents are rejected at onboarding, and the shekel is not offered as a wallet currency. The Hebrew and Arabic site languages remain available for brands in other markets where the operator's counsel has confirmed that residents may be served. Compliance teams can use this page to confirm the monopoly structure, the Penal Law penalties and the 2017 website-blocking regime. GameBridge offers no configuration that targets players in Israel.

Frequently asked questions

Sources and review

Reviewed against the sources below on 11 September 2026. Regulation changes; confirm the current position with local counsel before launch.

• Gambling Laws and Regulations Report 2026 — Israel — ICLG (Firon Law Firm), accessed 2026-09-11
• Gaming Law 2025 — Israel — Chambers and Partners, accessed 2026-09-11
• A general introduction to gambling law in Israel — Lexology, accessed 2026-09-11
• Israel's Conservative Stance on Gambling: Legal Framework, Exceptions, and Emerging Trends — Herzog Fox & Neeman, accessed 2026-09-11

Regulatory summaries are provided for orientation only and are not legal advice. Licensing requirements change; we validate them with you during scoping.