"Our entrepreneurs were under the impression that it's not the policy of the state of Israel to take any legal action against any Israeli who goes gambling…outside of Israel," a casino spokeswoman said.

The spokeswoman said the casino had not received any official or unofficial complaint from the Israeli government about Israelis gambling in Jericho.

Israeli law, which bans gambling, also applies to Israeli citizens in the Palestinian self-rule areas under the Oslo Accords, according to Porat. In contrast, he said, Israelis who gamble in Turkey or Egypt are not violating the law.

Israelis are the main clientele at the highly successful casino in Jericho, which opened in September. The casino has the potential to generate millions of dollars for the fledgling Palestinian economy.

Yasser Arafat, whose Palestinian Authority receives 50 percent of revenue, has banned Palestinians from gambling in the casino. Many Palestinians work in the casino, particularly in guarding the installation.

Tichon first mentioned the casino issue following the revelation that some Knesset members gamble and that some Knesset workers were caught gambling and smoking marijuana in Eilat.