'$10b. industry in Mediterranean': Israel ranks among gaming powerhouses, industry report reveals

Israel's gaming sector has been recognized as one of the global powerhouses, with the 2026 report by GamesBeat and Xsolla placing the country among the leading Mediterranean corridors of gaming influence and innovation. The report cites Israel's innovative environment, estimating that over 140 companies are involved in the gaming market or developing technologies applicable to games.

The main sectors identified were games, mobile entertainment, ad-tech, and monetization infrastructure, employing approximately 15,000 people.

While Tel Aviv remains the primary gaming hub, the report highlights that companies are establishing headquarters in cities such as Herzliya, Haifa, and Jerusalem. The gaming industry in Israel is projected to generate approximately $10 billion in annual revenue, solidifying the nation's position as a worldwide powerhouse despite its relatively small player base.

Israeli companies have developed unique monetization systems that outperform those in other markets, primarily due to their ability to monetize both paying and non-paying customers.

Coin Master, a free-to-play mobile game developed by Moon Active, stands out as Israel's biggest global hit, generating billions in revenue. The report also emphasizes Israel's long-standing expertise in user acquisition (UA) and monetization, enabling the country to export these advancements to other nations. The sector's growth is expected to continue, as mobile remains the dominant platform and global competition for user attention increases.

Furthermore, the integration of artificial intelligence in product development is anticipated to enhance optimization and facilitate better results in user acquisition, creative testing, and real-time monetization tuning for live-service games.