|A District Court in Tel Aviv has upheld a lower court ruling stating that companies operating gambling websites targeting Israelis are breaking the law, even if the sites are run and registered abroad.|
The ruling revolves around the appeal of Englishman Michael Carlton, Chief Executive Officer of the Victor Chandler Casino website. He was questioned 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.
Even though Victor Chandlerís server resides in Gibraltar, Carlton was ordered under house arrest even though no charges had been filed. He was allowed to deposit over $70,000 in guarantees as a condition to leave the country, a stipulation that he appealed.
Victor Chandler is one of the most popular gambling facilities in Israel and pays Israelis over $16 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.
Although investigations are still ongoing, the lower court had ruled that Victor Chandler was violating Article 225 of the Criminal Code, a decision that the District Court has now upheld.