The Austrian owner of a popular casino in Jericho is suing its Palestinian insurer for $45m (£31.2m) in compensation, after the casino had to close because of the violence in the Middle East.

Associated Press reported that the Oasis casino, which opened in 1998, had been an immediate hit, attracting 3,000 customers per day.

Lawyer for the casino Mazen Quptti said Casinos Austria International was seeking $680,000 (£472,000) to repair damages caused by gunbattles between Palestinian gunmen and Israeli soldiers.

Quptti said the casino's policy with Gaza Alahlia, one of the biggest insurers in the Palestinian territories, had a clause covering damages caused by political unrest.

The casino said it filed a claim five months ago, which Gaza Alahlia refused to pay out.