Tuesday, June 26, 2007

Israel Rules Against Online Gambling

The District Court in Tel Aviv has upheld a lower court ruling stating that online casino websites that target Israelis are breaking the Israeli law, even if the sites are operated abroad.

This ruling revolves around the appeal of the CEO of Victor Chandler Casino, Mr Michael Carlton, Mr Carlton was questioned by the Bat Yam fraud squad on suspicion of illegally running a gambling business in Israel along with investigations regarding sports betting involving events in which Israeli teams participated.

Even though Victor Chandler’s gaming server resides in Gibraltar, Mr Carlton was placed under house arrest even though no charges had been filed. The VC CEO was allowed to deposit over $70,000 in guarantees as a condition to leave the country.

Victor Chandler has become one of the most popular gambling sites in Israel and pays Israelis over £9 million in winnings each year. The question the District Court faced was whether the gambling that Israelis carry out from Israel via an international site is a crime even though the company is not Israeli.

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