Israel’s national lottery, the Mifal Hapayis, shut down the country’s 500 slot machines and 150 keno machines on New Year’s Eve, after unsuccessful licensing negotiations with the Treasury Department, which oversees the lottery and sports betting. Finance Minister Moshe Kahlon, who led the crackdown of state-sponsored gambling, said, “Eighteen months ago I said there would no longer be slot machines in Israel, and I am very happy that from today, there aren’t any anymore. I am hurt by the thousands of families that have lost their property, their money, their homes and even their families.”
Mifal Hapayis officials said shutting down the games will lead to a loss of $208 million in annual revenue. The organization is asking the government for repayment. But Finance Ministry officials said the real figure was less than that since it will allow additional lotteries. Mifal Hapayis wants to hold 14 more lotteries a year, beyond the two weekly draws it currently holds.
Mifal Hapayis also has agreed to lower from 7.5 percent to 7 percent the amount it keeps from earnings of $195 million annually. Sources said the resulting losses could be shared on a 75-25 ratio between the treasury and local governments, which have received lottery and slot machine profits.
