Israel’s gaming industry was ranked among the leading worldwide, with the 2026 report by GamesBeat and Xsolla calling the country one of the “Mediterranean corridors of gaming influence and innovation.”
The report highlighted Israel’s potential, citing its innovation environment and estimating that more than 140 companies in the country are currently related to the gaming market or developing digital technologies applicable to games.
The main sectors described in the report were games, mobile entertainment, ad-tech, and monetization infrastructure, while the report also mentioned that some 15,000 people currently work in industry-related companies.
Additionally, the report said that while Tel Aviv is still the main gaming hub in the country, there are many companies that are establishing their headquarters in other cities such as Herzliya, Haifa, and Jerusalem.
The report said that the gaming sector in the country could be generating some $10 billion annually in revenue, making a country with a rather small player base due to its population a worldwide powerhouse due to its service-exporting market.
Gaming Powerhouse. (credit: freepik, MRSIRAPHOL – FREEPIK.COM)
GamesBeat issued the report, which was sponsored by Xsolla, an American commerce firm that focuses on funding, distributing, placing, and monetizing video games worldwide.
What are Israel’s key advantages in gaming sector?
The report mentioned that Israeli companies developed several monetization systems that put them a step ahead in comparison to other development markets in the world, mainly due to them being based on monetization of both paying and non-paying customers.
The country’s main global hit was Coin Master, a free-to-play mobile game developed by Moon Active, with the app generating billions in revenue according to the report’s estimates.
The report also noted another advantage: Israel’s long-term experience in user acquisition (UA) and monetization, and its ability to export those developments to third countries.
Additionally, Israeli companies have been prone to developing mobile-first games and products with a strong selling point in foreign countries, rather than products focused on the local market.
Israel’s industry might be a giant in the making
The report also mentioned that Israel’s gaming sector is positioned for “continued growth as mobile remains the dominant platform and global competition for user attention intensifies.”
It also mentioned that the use of AI in the development of these products will accelerate optimization and allow companies to generate better results in the “UA targeting, creative testing, and real-time monetization tuning across live-service games.”
Another key point from the report was the number of exits reported in the sector, with $3.65 billion reported in exits from companies in the sector according to publicly disclosed data.
The report mentioned SuperPlay as an example, the Israeli startup that was initially sold to Playtika for $700 million. The transaction can now reportedly reach the $1.95 billion through earnouts, a key proof of the sector’s consolidation.
“To maintain this position, Israel will need to expand beyond its traditional strengths,” Senior Vice President of Business Development at Xsolla, Nikita Sherman, said.