The Times has reported that the Israeli transport minister has given permission to Icelandic Airline, Air Atlanta to launch a flying casino.

The Boeing 747, which has been specially converted, will bypass the country's gaming laws with its four hour flight three times a day over the eastern Mediterranean - outside Israel's territorial limits.

This follows news last month that Ryanair hopes to offer free air travel subsidised by in-flight casinos and pay-per-view tv screens, and is in discussions with Boeing regarding the production of software which will enable passengers to see films, cartoons and sports as well as gamble.