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WAAG: Israel: Arrests

The Israeli government made a bold move in early September 2009 with the arrest of a man who runs an online casino gambling site that he alleges only services gamblers located outside of Israel. The Israeli officials have cause to believe that his internet gambling site is actually illegally offering services to Israeli gamblers and have put the man under arrest and seized the servers that his online casinos use to operate in foreign markets. One of the key concerns that is now cropping up, beyond just whether the business accepted Israeli gamblers is whether the company is legally able to host the business on servers that are located within the country. The government is looking into this specific issue as the case progresses.

The man facing arrest and fines for operating the online casino out of Israel is protesting the situation and his lawyers are asking why he was picked out for prosecution out of all the Israeli businessmen who are operating similar gaming sites in foreign markets. The courts and the officials are currently seeking for that distinction. The situation is confusing in Israel right now and the man’s arrest has made several of the other businessmen running online casinos weary of their own businesses coming into question by the Israeli authorities.

The safest bet right now for the online casino gambling operators will be to ensure that their gambling sites have specific technology and software in place to prevent the Israeli gamblers from every accessing the site and starting up accounts. Additionally, with the confusion over the location of the internet gambling site’s servers in the country, this is a consideration that other companies may want to take into consideration if they also operate on servers located in Israel.