Insights & News /  Internet

Our firm was named one of Israel’s top three law firms serving the gaming and gambling industry in the InterGame 2016 directory. InterGame is a leading portal for the coin-operated amusement, casino and online gaming industries.

Increasing competition in the online gambling industry is motivating leading players in the industry to try to find new sources of income.

Following Israeli Prime Minister Benjamin Netanyahu’s statement about the possibility of opening Israel’s first casino, Gambling Compliance interviewed our firm. Our Internet Department believes the initiative has a greater chance of success this time, as economic conditions in Israel and globally have prompted the government to seek additional sources of revenue, which a casino could provide.

In 2014, the online gambling industry faced significant challenges, driven primarily by regulatory issues and disappointing results in several jurisdictions, particularly the US states of Nevada and New Jersey. The head of our gambling practice expects 2015 to be challenging as well. One contributing factor is new legislation in England, which took effect in late 2014 and requires online gambling operators offering services there to hold a licence issued by the local Gambling Commission and pay a substantial gambling tax. For the full article, click here.

Recently, one of Israel's most popular Facebook pages, "Twitting Statuses," was first suspended and later permanently removed by Facebook. Reportedly, the page operator had been paid to publish commercial content without using Facebook's advertising system and without clearly disclosing that the content was sponsored. It appears that the operator offered advertisers various media packages, with prices determined by the level of exposure available through the page. After this practice became public, Facebook suspended the page and permanently removed it a few days later. Facebook stated that the actions were taken because the operator had breached its terms and conditions. According to Facebook, the operator had received warnings about this conduct but failed to address them. Despite efforts to reverse the decision, including public statements and a publishing a letter he received from the head of Facebook's Israeli office, the operator was unsuccessful. Without addressing the legal dispute between Facebook and the operator, these events underscore the importance of complying with Facebook's terms and conditions. The time and resources invested in developing the page may now be lost, resulting in significant financial harm and a substantial loss of value. This is no minor matter: according to media reports, before the page was removed, the operator had sought ILS 10 million (approximately USD 2.5 million) for it. The page had approximately 700,000 followers, and the operator claimed it generated exposure to millions of users. Businesses that rely on a Facebook page, or any other third-party platform, depend on the continued availability of that platform. Where a business model is designed to generate followers and build value without complying with the platform's rules, that value may disappear quickly. Moreover, where third-party investors are involved, the entrepreneur may face potential claims if the business's core platform-dependent model was inherently vulnerable to suspension or removal. Entrepreneurs should therefore carefully observe the rules of every third-party platform on which their business depends. Failure to do so may expose them to significant financial and legal risks.

360Law published our overview of gambling law in Israel, analyzing the current legal framework, recent innovations, and potential future developments.

Barnea, IVC, and SpotOption invite you to the “Online Financial Trading Now” conference, exploring opportunities, challenges, innovations, and trends in the online financial trading industry. The event will take place on Tuesday, May 5, 2015, from 08:30 to 13:00 at Meirhoff Gallery, 8 Dovnov Street, Tel Aviv.

Adv. Micky Barnea, our managing partner, and Koby Simana, CEO of IVC Online, gave a joint interview on financial trading platforms. Micky discussed the impact of new Israeli regulations governing trading platform operations, which will take effect on May 26, 2015.

Senior executives from a range of foreign exchange (FX) companies met with leading venture capital investors today in Tel Aviv at a conference hosted by Barnea and IVC. To read more, click here.

Adv. Micky Barnea, our managing partner, contributed an article to IVC’s annual high-tech publication. In the article, he argues that although online financial trading centers on financial instruments, innovation is essential to the success of companies in the sector. They should therefore be regarded as high-tech companies.

We represented Stride Gaming plc, a leading AIM-listed gambling company, in its acquisition of the entire issued share capital of InfiApps Limited, a profitable Israeli mobile social gaming company with an international focus. The total consideration for the acquisition is up to USD 39.2 million, comprising an initial cash payment of USD 21.2 million on completion and an additional cash earn-out of up to USD 18 million, based on InfiApps’ EBITDA over the two years following completion.

The head of Barnea's Internet Department published an article titled "Casino in Israel – on the Cards?" in InterGaming Law, the specialist international gaming law magazine.

The head of Barnea's Internet Department published an article in Hebrew in the financial newspaper Calcalist discussing a recent Israeli court decision awarding damages to a plaintiff for defamatory statements posted about him on Facebook. He criticizes the court’s reasoning, which gave less weight to defamation on Facebook than to defamation published through other channels. He further argues that defamatory content published on Facebook should be treated in the same way as defamation published elsewhere.

The ongoing struggle to preserve net neutrality will determine how internet service providers treat online content. In the meantime, Netflix remains dissatisfied.

The head of our Internet Department was recognized as a leading practitioner in entertainment law in Israel by the 2014 edition of Who’s Who Legal, a leading international legal guide.

We authored the Israeli chapter of the International Comparative Legal Guide to Gambling 2015. The guide covers topics including relevant authorities and legislation, licence applications and restrictions, enforcement and liability. It is one of 38 ICLG guides covering major practice areas and providing in-house counsel with an overview of the law across jurisdictions.

Barnea has once again beem included in the InterGame Year Book Directory, this time in its 2015 edition, as a law firm advising the gaming and games industries.

Is blocking gambling websites justified? According to a Justice Department memo, an authorized police officer may order access to a website to be restricted if there is reasonable suspicion that it is used for betting and will continue to be used for that purpose unless access is restricted.

Online trading in foreign exchange, commodities, shares, and stock indexes is attracting customers worldwide. In response, several jurisdictions have introduced legislation to license and regulate the online financial trading market.

Barnea represents Menny Benish, Player 2 Player LTD., and R.I.I.G Limited, in an ILS 12 million claim against Moshe Tisona and Yalciner Enterprises Ltd.