Israel has given the go-ahead to "flying casinos" which will allow gamblers to board a jet and get around the country's tough gaming laws by leaving Israeli air space.

I cannot oppose it legally, and it is a very important contract for the Israeli aeronautical industry

Transport Minister Ephraim Sneh

From next year, a Boeing 747 operated by an Icelandic airline will take off from Tel Aviv three times a day for flights over the Mediterranean, Maariv newspaper reports.

The plan by Israeli investors to spend $20m to convert the jumbo jet into a sky-high casino will skirt a legal ban on casinos in Israel, where powerful religious parties oppose them.

"I approved it because I cannot oppose it legally, and it is a very important contract for the Israeli aeronautical industry," Transport Minister Ephraim Sneh told Israeli radio.

Cruise alternatives

Israelis, who are keen gamblers, regularly flock to casino cruises from the Red Sea port of Eilat or travel to foreign countries, especially Turkey, to play.

And a casino in the Palestinian town of Jericho in the West Bank drew large crowds of Israeli gamblers before a Palestinian uprising against occupation erupted in September 2000.

Thousands of Israelis patronised the European-run casino, which was approved by the Palestinian Authority, although Palestinians were not allowed in.

The casino is now closed.