Israel has faced one of the most serious cases of illegal sports betting in the world. Never there has been a law permitting the activity, therefore it continuing to grow in shady ways. Now, by the end of 2012, a beacon of hope has been lighted, as the first step towards the legalization of the activity will be made next week. This comes by the hand of Avichai Snir, scholar and economist, graduated from the prestigious Netanya Academic College.
In his studies, Snir reached some data that will surely amaze many. By just legalizing a half of all the illegal sports betting in Israel, the government could have an extra NIS 1.2 billion generated by tax revenues. The tax rate applied by Snir in his studies is of a 20 percent, so this number could be much bigger. According to Snir, at least 11 billion are wagered every year illegally
As we said, the results of this study made by Avichai Snir and coworkers will be made public at the Sderot Conference. This conference takes into account social and cultural matters, so it comes as the ideal place for what could be the first step towards legalization. The positive effects of the legalization of sports betting aren’t only a huge boost on tax revenues. Legalizing could provide a much more secure environment for gamblers, eliminating unlawful operators, money laundering operations and general sports corruption. Even more, the single out that a secure environment could boost even more the betting activities, making the legalization a great step from almost every side.
Reports made by the International Monetary Fund, state that illegal activities related to sports betting take more than $3 trillion every year, making it one of the most profitable illegal activities in the world. This number translates in the 5 percent of the world’s gross product. Israel’s black market shows itself as a major force on the country’s national product, reaching 21 percent of it. This number can be translated to a major NIS 136 billion, having around NIS 34 billion involved in money laundering operations.
The report that Snir will present also provides a crucial piece of data towards the online world. Around $51 billion were generated this year by online gambling. They state that to this point, seven European countries have legalized online gambling and many more outside Europe. Almost daily casino news arise on how new countries are trying to deal with the acceptance of online betting. Online betting is against the law in Israel, but illegal gambling operators always find ways to bypass security measures, to which Snir report advises towards a more open thought on the matter by the government