Israeli District Court Rules against I-Gaming

26 June 2007

A Tel Aviv District Court on Monday upheld a January lower court ruling that said gambling Web sites operating legally in other countries that target Israel-based bettors violate Israeli law.

Caught in the middle is Victor Chandler (VC) CEO Michael Carlton, who in January was detained by Israeli authorities under suspicion of organizing and managing illegal gambling in Israel.

After being questioned, Carlton was placed under house arrest, though no formal charges had been filed. However, he was ordered to pay $70,000 to guarantee his return to Israel, according to Israeli newspaper Haaretz.

VC operates out of England and Gibraltar and pays Israelis NIS 70 million ($16.3 million) in winnings each year.

The district court on Monday had to decide if the gambling carried out within Israel via international Web sites is a crime under Article 225 of the Criminal Code. The high court previously ruled that in the case of VC, it is a crime and now the District Court has agreed.

Nonetheless, the investigation of VC is ongoing.