An Israeli investor, who made his fortune in the online gambling industry, is offering some high-stakes bucks in a bid for Mideast peace.

Avi Shaked is offering the Palestinian prime minister US$1 billion, if he and his Israeli counterpart agree to sit down and reach a peace agreement.

"We cannot continue suffering...and it doesn't make sense that people in both sides will get killed...soldiers in Israel, kids in Palestine," Shaked told CTV Newsnet. "The only way to put an end to this bloodshed is that the two leaders will sit down, reach an agreement and that will be the end of the conflict. It is so easy."

Shaked is confident despite a recent increase in tensions. Israelis and Palestinians threatened Sunday to scrap a five-month truce that has largely ended violence in Gaza. Palestinian militants insist the truce must also apply to the West Bank and Israeli leaders complained that Gaza rocket squads are still active.

"The way to reach an agreement is to sit down. So there is no other way," Shaked said.

Under Shaked's plan, Hamas leader and prime minister Ismail Haniyeh will receive an initial sum of $100 million if he and Olmert just sit down to talk.

On the long-shot that a peace deal is struck, Haniyeh will cash in on the big jackpot.

"Mr. Haniyeh has expressed that he might find the right way to sit down ... sit down and we will invest money and after me there are other business people that are willing to do the same," said Shaked.

Shaked said the money is not going to Haniyeh personally, but would provide an investment fund for the Palestinian people.

His plan calls for the money to be invested in Palestinian companies, with the hope that it will boost the economy and eliminate some of the poverty that helps fuel the conflict.

Shaked is a supporter of Israel's Labor party and has launched peace initiatives in the past.