Israeli Activists Seek Removal of Lottery Kiosks from Public Spaces

Two Israeli organizations, the Movement for Planning Activism and the Jerusalem Urban Coalition, are pushing to gradually remove the Israel Lottery (Mifal HaPayis) kiosks from sidewalks and public areas. Their demand is tied to the upcoming renewal of the lottery's operating permit, which expires at the end of 2026. The groups want new conditions included in the permit that would alter the current practices regarding these kiosks. While a sweeping eviction order has not yet been issued, the organizations aim to prevent new kiosks from being installed in public spaces and to phase out existing ones.

Mifal HaPayis currently operates approximately 539 kiosks across Israel, with about 385 in urban areas and 154 in commercial zones. The lottery operates under a special permit from the Ministry of Finance, which allows it to conduct lotteries despite a general prohibition on gambling in Israel. This permit's stated goals include directing profits to public needs and protecting vulnerable populations, but the legality of the kiosks' physical presence on public land is a separate issue from the lottery's operating license. Activists argue many kiosks are not legally regulated, while Mifal HaPayis states they are placed in coordination with local authorities and that efforts are underway to regularize those that still require it.

The history of Mifal HaPayis dates back to 1951, initially established to fund hospital needs. The first lottery offered a grand prize of 1,000 Israeli liras. The kiosks themselves have been part of the lottery's presence since its inception, though the modern design evolved over time. In some cases, particularly in Tel Aviv, agreements with the municipality have allowed for the use of sidewalk space without charge for extended periods, though these agreements have often stemmed from past disputes over kiosk removal.

The kiosks are operated by franchisees who run them as independent businesses and do not pay Mifal HaPayis franchise fees. Franchisees are compensated based on sales, with a cap of 7% on the first 2.8 million shekels of annual sales, a more favorable rate than that offered by private stores selling lottery products. Mifal HaPayis stated that the operation of these kiosks supports around 850 franchisees and their families.

Despite the ongoing debate, Mifal HaPayis has also been working on modernizing its kiosks, issuing a tender in November 2024 for new models. The lottery has also reported reducing the number of kiosks by about 15% in recent years and redesigning some with defibrillators. While Mifal HaPayis emphasizes that its profits are returned to the public through various projects, the opposing organizations maintain that their demand is not to abolish the lottery but to reclaim public space from the kiosks.