Online gambling in Israel is heavily restricted, not open. Only two state-controlled bodies may legally offer any gambling: the Israel Sports Betting Board (ISBB), which runs the ‘Winner’/Toto sports-betting brand and offers it online, and Mifal HaPais, the national lottery. Every other form of online gambling — casinos, slots, poker and all offshore betting sites — is illegal under Israel’s Penal Law, and the state enforces this through court-ordered ISP blocking and restrictions on payments.

Israel’s Penal Law of 1977 imposes a blanket prohibition on games of chance, lotteries and betting (Chapter Twelve, ‘Prohibited Games, Lotteries and Betting’), with only two narrow, state-owned exceptions. The ISBB organises sports betting under dedicated legislation and offers it via the ‘Winner’/Toto brand, and Mifal HaPais runs the national lottery under Ministry of Finance supervision. Because the Penal Law predates the internet, Israeli courts have interpreted its general ban to cover online gambling, including foreign operators serving players inside Israel.

Who regulates gambling?

There is no open-market online-gambling regulator. Instead, the ISBB runs sports betting and Mifal HaPais runs the lottery, both under Ministry of Finance oversight. No private or foreign operator can obtain a licence. Enforcement against illegal gambling is led by the Israel Police alongside the State Attorney’s office.

Licensed vs offshore

  • Legal (state): Winner/Toto sports betting and Mifal HaPais lottery.
  • Illegal: all online casinos, slots and poker; all offshore betting and casino sites aimed at Israeli residents.

Under the Powers to Prevent the Commission of Offences by Means of an Internet Website Act (2017), district-court judges can order internet service providers to block gambling websites at police request. The power was first used in October 2018 against three offshore gambling sites. This means an offshore account can be cut off at any time, leaving deposits and winnings stranded.

Payments and crypto

Legal wagers on Winner or the lottery use ordinary Israeli payment methods (bank cards, cash at retail agents). For offshore sites, the Bank of Israel has issued directives restricting financial transactions connected to online gambling, so card and bank payments are frequently declined or reversed.

Cryptocurrency is legal to own and trade in Israel but is not legal tender. The Israel Tax Authority treats it as a taxable asset (Circular 5/2018, with capital gains generally taxed at 25%), and the Bank of Israel and Israel Securities Authority supervise the sector under strict anti-money-laundering law. Crucially, paying an offshore casino in crypto does not make the gambling legal — the activity is still banned, and crypto flows tied to gambling attract heightened AML scrutiny.

Are winnings taxed?

Yes. A 2018 reform (in force from January 2019) cut the old exemption, which previously reached ILS 50,000. Lottery, Toto and prize winnings are now:

Winnings (ILS)Tax treatment
Up to 32,760Exempt
32,760 – 65,520Graduated rates
Above 65,520Flat 35%

The top rate on large lottery wins had earlier risen from 30% to 35% in January 2017.

Safer gambling and getting help

Israel has a documented and growing problem-gambling burden. A 2023 nationally representative study (roughly 4,000 respondents) identified about 400,000 residents as moderate-risk or problem gamblers, rising above one million when low-risk players are included; the study reported that problem gamblers spend an average of about ILS 5,000 a month. Support is available through the Ministry of Health’s addiction-treatment services, and Gamblers Anonymous groups operate across the country.

If gambling stops being fun, treat that as a stop signal, not a challenge.

You must be 18+ to gamble legally in Israel. If gambling is causing harm, contact the Ministry of Health addiction service. Play responsibly.

Sources