GBI claims compensation from Israeli government

GBI, a British company that provided betting services to the Israeli Toto before the Israeli Government banned horse racing, is allegedly pressing ahead with a compensation claim of $57 million, Israeli newspaper Haartez reports.

Finance Minister Moshe Kahlon announced the Government’s intention to implement the ban late 2016, saying at the time that the 460 million shekels ($121.8 million) generated from betting on horses every year by the Council for Organized Sports Betting, popularly known as Toto, was “tainted money.” (See previous  reports).

GBI had been granted authorization in 2012 to provide its betting services to the Toto, with the contract due to end in August 2018.

According to Haartez, GBI recently made its case at a hearing chaired by director general of the Israeli Finance Ministry, Shai Babad, saying it was seeking significant compensation for the early demise of its contract.

Israeli Treasury officials are reportedly prepared to negotiate terms and discussions are expected to continue within the next few weeks.

“Violation of the agreement and its unilateral cancellation should not be allowed when there has been no change in the conditions, and that a current examination of the public good requires the cancellation of the contract with the company for the purpose of conducting horse racing,” a GBI statement reads.

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