Israeli Finance Ministry releases paper on gambling legalisation

The paper details the social and economic costs but also the economic benefits the creation of casinos may bring to Israel.

Israel.- Prime Minister Benjamin Netanyahu is considering the possibility of legalising gambling in Israel. The initiative is backed by Tourism Minister Yariv Levin, but strongly opposed by religious parties, which will complicate the possibility to win Knesset approval for the plan.

Now, the Israeli Finance Ministry has released a paper weighing pros and cons of the proposed casinos in the southern resort town of Eilat. The study was included in an internal presentation made by the Tourism Ministry.

According to the paper, the creation of the two, to four gambling facilities Levin recommends, would increase by 30,000 the number of Israelis with a gambling problem and cost the economy 185 million shekels (US$47.3 million) annually. On the other hand, the study found that gambling legalisation in Israel would be beneficial for its citizens, by deterring Israelis from gambling overseas or illegally online and enabling the state to tax and control gambling revenues. Casinos would also boost tourism in Eilat, attracting more Israelis and foreign tourists to the city.

An estimate made by the Tourism Ministry says that casinos could bring in annual revenue of US$336 million, based on 2.1 million visitors betting an average of US$160 each, they would lure around 284,000 additional foreign visitors to Eilat annually and they would create 11,000 new jobs. Eilat’s hotels would experience a 10 percent increase in the number of overnight stays, to 230,000 per year, gaining around 220 million shekels (US$56.30m) in hotel revenue. Furthermore, the government would benefit from increased tax revenues.