The Austrian owners of a popular gambling casino in Jericho are suing their Palestinian insurers 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 some 3,000 customers per day.

A lawyer for the casino Mazen Quptti said Casinos Austria International was also 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 resulting from political unrest.

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

The casino had been a boon for the Palestinian Authority, which received a share of the profits. Most of the employees were Palestinians.

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