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Are prediction markets legal in Israel, under a strict betting ban?

A plain, dated guide to prediction market legality in Israel. Gambling and betting are broadly prohibited under the Penal Law outside two state licensed bodies, and prediction markets are not separately addressed, so a resident faces real legal risk. Information, not legal advice. As of April 2026.

By Morten AndersenFounder and editor · Two decades in advisory, hospitality and mediaEditorial review by Fredrik Filipsson · Last reviewed 1 April 2026

Last reviewed 1 April 2026 · Status as of April 2026 · Information, not legal advice

Gambling broadly prohibited
Gambling broadly prohibited
Betting is largely banned outside two state licensed bodies, and prediction markets are not separately addressed.
Information, not advice. This page is general information, not financial, legal, tax, or betting advice. Prediction markets carry a real risk of loss. You must be 18+ or the legal age in your region.
Quick answer

As of April 2026, Israel takes a restrictive line. The Penal Law of 1977 broadly prohibits games of chance, betting and lotteries, with narrow exceptions for two state licensed bodies, Mifal HaPayis and the Israel Sports Betting Board. Prediction markets are not separately licensed or addressed, and platforms such as Polymarket hold no Israeli authorisation, so using them sits against a strict betting prohibition. High profile 2026 cases over bets placed using classified information underline the legal exposure. Treat prediction markets as legally risky in Israel and confirm the position before you act.

How the rules stack up

A broad ban, narrow exceptions.

01
The criminal layer
The Penal Law of 1977 prohibits games of chance, betting and lotteries. Organising or operating such activity is an offence, and the prohibition is drawn broadly enough to capture most online betting offered to residents.
02
The licensed exceptions
Two state controlled bodies operate lawfully under specific authorisation. Mifal HaPayis runs the national lottery, and the Israel Sports Betting Board runs regulated sports betting. There is no general licensing route for a private prediction market to operate.
03
How prediction markets sit
Prediction markets are not separately addressed in Israeli law. Because they involve staking money on uncertain outcomes, they read naturally as betting, which is prohibited outside the two licensed bodies. No prediction market holds Israeli authorisation.
04
The enforcement signal
In 2026 Israeli authorities indicted individuals accused of using classified information to place bets on Polymarket about military operations. The cases concern misuse of secrets rather than a ruling on prediction markets generally, but they show the platforms are firmly on the authorities radar.
Why this is the answer

Prohibition is the baseline.

Israel does not run an open betting market. The Penal Law prohibits gambling and betting broadly, and only two state bodies operate under specific authorisation. A private, crypto native prediction market has no lawful route to serve Israeli residents, so the baseline is prohibition rather than a grey area of tolerated access.

The honest grey area

The honest uncertainty is about how individual use is treated in practice rather than whether the platforms are licensed. They are not. The 2026 indictments turned on classified information, not on a general test of prediction markets, so the exact treatment of an ordinary user is less tested in the courts. We mark prediction markets in Israel as legally risky and unauthorised, and we do not point readers to them.

For a reader here

Where the platforms stand for an Israeli reader.

No prediction market holds Israeli authorisation, and betting is broadly prohibited, so there is no lawful venue to recommend and no open account module on this page. The standing below is informational.

Reachable but holds no Israeli licence, and betting is broadly prohibited outside the two state bodies. High profile 2026 cases involved bets placed on the platform. Treat use as legally risky.
Unauthorised
Built for the United States market and not licensed in Israel. Generally restricts access outside its served jurisdictions.
Not offered
A real money prediction market with no Israeli licence. It falls against the broad betting prohibition.
Unauthorised
US regulated exchanges
CFTC registered venues such as Robinhood, Crypto.com and ForecastEx serve the United States and do not offer service to Israeli residents.
Not offered
Onchain venues
Crypto native venues operate outside Israeli authorisation and against a broad betting prohibition. Their standing for a resident is contested and carries serious added risk.
Contested

Standing is indicative and as of April 2026. We link to a platform only where it is genuinely available and authorised for a reader here, and we mark contested or blocked positions as such. We do not treat reachability through a browser as legality.

Regulator and sources
Who to check.

Gambling and betting fall under the Penal Law, enforced by the police and prosecutors, with the two licensed bodies being Mifal HaPayis and the Israel Sports Betting Board. Securities matters fall to the Israel Securities Authority. Confirm the live position with the relevant authority before acting.

  • Israeli indictments over bets placed using classified information on Polymarket (NPR, February 2026).
  • Legal framework: the Penal Law of 1977, which broadly prohibits games of chance, betting and lotteries outside state licensed bodies.
  • For a permissive federal contrast, see our United States legality overview.

Status as of April 2026. We never invent a citation, and where a position is contested we say so.

A note on risk,

A prohibited activity carries legal as well as financial risk. Prediction markets can lose you money, and an unauthorised venue offers no local protection. Stake only what you can afford to lose, never to chase a loss, and never on borrowed money. If gambling is causing you harm, seek support from a local health or counselling service.

FAQ

Israel, answered plainly.

Are prediction markets legal in Israel?

As of April 2026, no prediction market is licensed in Israel, and betting is broadly prohibited under the Penal Law outside two state bodies. Prediction markets are not separately addressed, so use sits against a strict prohibition. This is general information, not legal advice.

Is Polymarket banned in Israel?

Israel has not issued a platform specific ban, but gambling and betting are broadly prohibited, and the platform holds no Israeli authorisation. High profile 2026 cases involved bets placed on it using classified information. Treat use as legally risky.

Who regulates betting in Israel?

Betting and gambling are governed by the Penal Law and enforced by police and prosecutors. Only Mifal HaPayis, the national lottery, and the Israel Sports Betting Board operate lawfully under specific authorisation.

What were the 2026 Polymarket cases about?

Israeli authorities indicted individuals accused of using classified military information to place bets on Polymarket. The cases focused on misuse of secrets rather than on prediction markets in general, but they show the platforms are under scrutiny.

Could Israel license prediction markets?

There is no current route for that. The betting prohibition is broad and the licensed exceptions are narrow and state controlled. Treat prediction markets as unauthorised and verify the live position before acting.

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