"Very low" chance of Eilat casino says consultant

chance of a casino being approved in the Israeli city of Eilat is "very low", according to a gaming consultant based in the country.

Local media recently reported that Prime Minister Benjamin Netanyahu is to address the idea of opening a casino in the southern resort town, with the transportation and tourism ministers among those invited to take part in talks.

A potential Eilat casino has been met with opposition however, with Orthodox political parties among those not in favour.

"A casino in Eilat is not something that has a broad consensus," says Peter Marcus, CEO of The Marcon Consulting Group, who lives in Israel and has followed the Israeli gaming industry for many years.

"First of all, the religious parties are against it, and they hold a massive amount of power in government."

"Secondly, the Israeli finance minister is very much against gambling.

"He grew up in a very poor neighbourhood and has seen how illegal gambling can ruin people's lives.

"People have tried to persuade him but what he hasn't understood, or not wanted to understand maybe, is that it's better to allow gambling and control it, rather than ban it and have illegal gambling where there's no controls and no social responsibility."

Marcus, a former William Hill Online COO and Betfair UK managing director, also believes that some opponents could possess a deeper political motive.

Under the terms of the 1993 Oslo Accords between Israel and Palestine, a casino was built in Jericho in 1998 and became hugely popular among Israeli gamblers, although it has long since closed.

"This is just my supposition, but I think there's a secret hope at the back of everyone's minds that there can be a peace treaty with Palestine, and if that does happen there will be a need to have casinos in the Palestinian territory to bring in revenue," says Marcus.

For all of these reasons, he says, the chance of a casino being allowed in Eilat is "very low".

Despite this belief, Marcus actually considers that a casino would be "perfect" for the city.

"Eilat has become predominantly a local tourism market and the economy is really suffering," he says.

"I think this is behind the thought process of allowing casinos in Eilat."

"If it was allowed, it would be perfect – the hotels are basically built for casinos.

"Eilat smells and feels a little bit like a very small version of Vegas.

"It also has special status as a VAT-free zone, so it would be relatively easy to allow gambling only in Eilat because of that status and its isolation."