Prime Minister Benjamin Netanyahu holds meeting to discuss draft plan that envisions four casinos in Eilat • Netanyahu: Sheldon Adelson will not invest in casinos • Potential boon to southern resort town, Habayit Hayehudi and Shas object.
By Mati Tuchfeld, Shlomo Cesana, Zeev Klein and Yehuda Shlezinger, ISRAEL HAYOM
Tourism Minister Yariv Levin and Transportation and Road Safety Minister Yisrael Katz also took part in the meeting, which was convened to discuss the benefits of casinos would have on the southern town when it comes employment, tourism and entertainment. There are currently no legal casinos in Israel. The ministers also discussed whether the casinos should let Israelis gamble or just foreign nationals, and whether casinos were economically viable in Israel.
A statement released by the PMO Wednesday said the new initiative was designed “to save Eilat [economically] and create thousands of new jobs.” Senior Likud officials said that those who have voiced criticism over the plan were rushing to conclusions as there were still no concrete plans on the matter. The officials said the detractors would eventually realize that their misgivings were unfounded.
During the meeting, Prime Minister Benjamin Netanyahu mentioned that he was not in a conflict of interest because businessman Sheldon Adelson has already told him he had no plans to invest in a casino in Eilat.
The meeting concluded with ministers appointing Levin as the head of a new steering committee that would include the PMO’s director general, mayor of Eilat, the director general of the Transportation and Road Safety Ministry, and officials from the Finance, Justice and Public Security ministries.
The draft plan calls for a casino strip that would replace Eilat Airport (which will be relocated). A new conference center and entertainment venue will also be built on the airport premises. According to the plan, the casinos would comprise only a small part of the entire complex. They would be operated by private entities but tightly regulated by the state, and they would have to comply with stringent requirements mentioned in a government tender.
Tourists who hold foreign passports would be allowed to gamble without any restrictions, but Israelis would be subject to certain limitations: A certain age requirement would be imposed, and entry would be denied to those who receive certain government allowances. Israelis would also be allowed only in certain hours and be granted only a limited number of entrances per day. Similarly, Israelis would not be allowed to gamble on more than a specific amount.
According to a Channel 2 report from Wednesday, the Finance Ministry’s chief economist believes the casinos could generate some 1.3 billion shekels ($333 million) in revenue per year. The economist suggested that the government forgo taxation on what gamblers win but impose a 15% tax on those who receive the licenses to operate those casinos. The ministry also called for a 40% tax on the casinos’ operating profit. These measures should add some 450 million shekels ($115 million) to the state coffers annually.
Habayit Hayehudi leader Naftali Bennett said Wednesday that his party would oppose the plan. “Casinos are against the values of our state; they serve the strong and weaken the weak,” he said. “The emotional and physical damage they inflict will be covered by all of us. Israel is not Las Vegas, and it will not become Las Vegas.”
Levin responded that “the righteous indignation of the Habayit Hayehudi members, who have chosen to ignore the fact that illegal gambling is rampant in Israel, shows their lack of seriousness.” Levin said they did not offer any alternative plan to help Eilat.
“I expect the cabinet ministers to deal with the issues that are germane to their ministry rather than meddle in an issue they are clueless about and on whose details they have no command,” he continued. “Habayit Hayehudi will single-handedly bring about Eilat’s demise,” he warned.
The ultra-Orthodox party Shas has also voiced opposition. In a statement issued on Wednesday, the party said “casinos in Israel will only serve the tycoons and the super-rich, and will cause great harm to those less well-off.” The party stressed that it “represents the poor and the weaker segments of society, and therefore it will vehemently oppose the construction of casinos in Israel.”
The left-wing Meretz party also said it was opposed to the plan.
I hope they have their own version of the Fremont Street experience.
So illegal gambling goes on. The state makes nothing from it!
People like to gamble. Make the gambling limited to Eilat, regulate it and make tax money on it. Why not? It will not pass because of politicians with phony morality.
Shas is the funny ones their leader is a former jailbird convicted of taking bribes. So they oppose this based on corruption or no one offered them any money? They are waiting for a bribe to change their votes, no?
Schumuel HaLevyII if you are reading this I would be interested in your opinion, for real!