Tourism minister pushing for casino in Israel

Most of his predecessors had big plans to build casinos in Eilat but were unsuccessful in realizing vision. Stas Misezhnikov now hopes to legalize gambling industry in Israel, turn revenue to Negev's development

Elizaphan Rosenberg|Published: 11.18.10 , 07:46

Tourism Minister Stas Misezhnikov announced Wednesday he will be pushing to build a casino in Israel next year. This declaration is not the first by a tourism minister, however construction plans have never been carried out.

Over the past 10 years almost all of Israel's tourism ministers promised to build a casino in Eilat. In 2003, the Prime Minister's Office tried to promote the establishment of two casinos in south Israel but the plan did not come to fruition.

Both Abraham Hirchson and Yitzhak Aharonovitch promised to set up casinos during their stints as tourism ministers.

In fact, the question of setting up a casino in Israel has been debated for more than 25 years, but no signficant steps were ever taken to further the plan. Three different committees discussed proposals to build a casino, two of which were government-appointed.

One of the committees issued its conclusions in 1995 but did not recommend establishing a casino. It pointed to the problems that may arise should such a facility be built and set the conditions for its operation should it be built. In January 2008, the Knesset's Research and Information Center issued a report on the matter.

The illegal gambling industry in Israel generates some NIS 20 billion ($5.43 billion) a year.

Potential revenue

Disregarding the social considerations, the establishment of a casino could earn the State of Israel large amounts of money. It is estimated that a casino would boost the economic activity of the area where it is built by creating jobs, increasing demand for trade, accommodation, food etc.

A casino would also increase the state's revenue in taxes. Legalization of gambling facilities would prevent unreported funds and may reduce money laundering activities. The state is currently losing potential tax revenues because of the illegal gambling industry.

Those who support the establishment of a casino in Israel claim that it would boost incoming tourism. A casino can serve as an attraction pulling foreign tourists into Israel and keeping Israelis who usually go on gambling vacations abroad, in the country.