ISRAEL Law and Practice Contributed by: Liran Barak, Herzog Fox & Neeman
6.3 Affiliates Both the National Lottery and the ISBB have policies about the use of concessionaires, mainly with regard to the number of distribution points available, their location and any qualification criteria for applicants. Among other things, applicants must: • be above the age of 18; • participate in responsible gambling training; and • provide financial surety or a bank guarantee to ensure compliance with the concession terms. The ISBB has an internal policy on the matter. The National Lottery acts in accordance with the terms set out in its renewable permit. 6.4 White Labels The ISBB is not allowed to use white-label partners in its operation on online betting services. 6.5 Technical Measures ISP blocking of gambling websites operating from outside Israel was first successfully implemented in late 2018. Under the Powers to Prevent the Commis- sion of Offences by Means of an Internet Website Act 5767–2017, district court judges may issue warrants ordering ISPs to block access to illegal gambling web- sites, at the request of the Israeli police or the State Attorney’s office. The Bank of Israel has issued a formal procedure in order to thwart financial transactions relating to unlicensed gambling (Conduct of Banking Business Procedure No 411). The procedure imposes stringent restrictions on Israeli financial and credit institutions regarding transactions related, among others, to online gambling. Finally, while there are no specific laws in place for the facilitation of payment blocking in relation to online gambling in Israel, there is secondary legislation in place that allows local authorities to instruct financial institutions to block the processing of such transac- tions.
aires. These are determined based on various demo- graphical considerations (including the socio-eco- nomic profile of various geographical areas). Under the current permit, new points of sale may not be established in a proximity of 500 metres or less from middle schools or high schools. The ISBB has less stringent criteria for the location of its distribution points. In accordance with an internal ISBB policy, several key principles are taken into con- sideration when examining an application to set up a new point of sale. The Status of Poker One possible development on the horizon could be related to the legal classification of the game of poker. In recent years, case law in Israel has classified poker as a “prohibited game”, as defined in Section 224 of the Penal Law. Late in 2018, the Supreme Court of Israel handed down a ruling in a tax case in which it had to assess the tax liability of a professional poker player who generated significant winnings in poker tournaments held outside Israel. In its ruling, the court’s majority opinion was that poker is not in fact a game of chance, in particular when dealing with an experienced player who successfully generates consistent revenues in poker tournaments over the years. The court had also passed criticism on the legal validity of prior, lower-court rulings that held that in assessing the game of poker, the “predomi- nance test” should be applied to the game in relation to an amateur player playing a single hand. Nonethe- less, owing to this opinion being made only in obiter dictum, it did not form a binding legal precedent.
6. Online Gambling 6.1 B2C Licences
The only B2C online gambling licence is the licence awarded to the ISBB, allowing it to offer certain sports- betting services online. 6.2 B2B Licences (Suppliers, Software, Etc) B2B online gambling licences are not available in Israel.
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