I think the sites that will work well in Israel are content sites and white label site. The site need to aim to the first-time online gamblers with simple instructions of how this thing works. A good forum could be helpful too.
You also need to know that israelis are spoiled. They want the casino to be in hebrew. The biggest proof for that is BeTheDealer. While this casino failed to enter the international market as a big player, in Israel it is the no.1 casino with almost zero competitors. Net Entertainment has recently came out with casinoeuro in hebrew, but they lack the branding and marketing of BTD.
To sum it all, the key to success in Israel is a good content site with a forum and a great advertising budget.
But if you really want to make big money in Israel you need a casino with a software in hebrew. Microgaming or RTG in hebrew could worth millions. If anyone wants to invest in it, please contact me.