Israel has reached a financial settlement with UK-based horseracing broadcaster GBI Racing after the country’s race betting ban took effect.

On Wednesday, the Racing Post reported that the government of Israel had agreed to pay nearly £5m to GBI Racing, a joint venture of television channels Racing UK and At The Races, as compensation for the early termination of its contract with the Israel Sports Betting Board (ISBB).

This week, Israel formally banned betting on horseraces, part of the country’s broader effort to reduce gambling activity by its citizens. GBI’s contract to supply the ISBB with UK and Irish racing product was supposed to extend through August 2018.

Despite race betting having only launched in Israel in 2013, the country had reportedly become one of GBI’s top-five territories in terms of revenue generation. GBI originally sought compensation of up to 200m shekels (£43m) for the termination of its ISBB deal but the company revealed Wednesday that it had settled for a mere 23m shekels (£4.9m).