Online Gambling in Israel + Casinos List
Israel is a country with a lot of gambling laws. One such law, for example, applies to online gambling. The Israeli parliament passed the "Law against Gambling and Games of Chance" in 1958, which essentially makes it illegal to gamble in any form at all. The only exception to this rule is betting and government lotteries as long as they are supervised by the government-run Israel Lottery Authority.
As result, not so many online casinos accept players from Israel, but there are still plenty of them on the market that actually do.
Speaking about penalties for playing online from Israel, there are no such.