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Bad News From Israel
District appeal court rules against online gambling
Reports from the Israeli news publication Haaretz indicate that
a District Court in Tel Aviv has upheld a lower court finding that
companies operating online gambling websites targeting Israelis
are breaking the law, even if operated and registered abroad.
The issue before the court involved an appeal by British businessman
Michael Carlton, who is Chief Executive Officer of the Victor Chandler
casino website registered and licensed in Gibraltar. Carlton was
questioned earlier this year whilst in Israel (see previous InfoPowa
report) by the Bat Yam fraud squad on suspicion of illegally running
gambling operations in Israel, along with investigations regarding
sports betting involving events in which Israeli teams participated.
Carlton was ordered to undergo house arrest despite no charges
filed, but was subsequently required to deposit over $70 000 in
guarantees as a condition to leave the country, a stipulation that
he appealed. The lower court ruled that the Victor Chandler site
was violating Article 225 of the Criminal Code, leaving the District
Court faced with an appeal and the decision as to whether online
gambling by Israelis from Israel via an international site is a
crime when the gambling provider is outside Israeli jurisdiction.
The superior court upheld the ruling of the lower court, declaring
that, "...any company operating a gambling website that targets
Israelis is breaking the law, no matter if the site is run from
abroad and if the company is registered outside Israel."
Victor Chandler is one of the most popular Internet gambling facilities
in Israel with payouts to Israelis of over $16 million in winnings
each year.
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