Given that the betting market in Iceland has expanded rapidly in recent years, the Chamber of Commerce has suggested introducing a licensing system for betting operations. According to the Chamber, such a system could generate around ISK 5 billion [$36 million / €33 million] annually in tax revenue.

No domestic regulations

In an interview with RÚV published this morning, Björn Brynjúlfur Björnsson, the managing director of the Chamber of Commerce, observed that the betting market in Iceland had grown rapidly in recent years. “At the same time, operations have increasingly moved abroad,” Björn Brynjúlfur noted, adding that no tax revenue was being collected and no domestic regulations governed the activity.

A statement from the Chamber this morning highlights that few nations gamble as much as Icelanders: “What we see in the data is that the government’s prohibition policy has not, at the very least, resulted in Icelanders gambling less. We see that the average Icelander spends ISK 80,000 [$575 / €525] per year on betting,” Brynjúlfur told RÚV.

Second among Europeans

As noted on the Chamber of Commerce’s website, Icelanders placed the second-highest amount of bets among all European countries in 2023, with only the Irish spending more on betting. Over the years, the share of domestic operators within the market has steadily been displaced by foreign companies.

“Twenty years ago, 91% of bets were placed with domestic operators (see figures below). Since then, the betting market has grown fivefold, and the market share of domestic operators has steadily declined. At the same time, the market share of foreign operators has increased fivefold. As a result, Icelanders have increasingly turned to foreign betting sites for sports betting and gambling in online casinos.”

The Chamber of Commerce suggests that those currently licensed to operate betting services in Iceland should be compensated through tax revenues, which could amount to as much as ISK 5 billion [$36 million / €33 million] per year: “Thus, support for sports, rehabilitation, and similar initiatives would remain unchanged if our proposals are implemented.”

Banned for over 100 years

As noted on the Chamber of Commerce’s website, betting has been banned in Iceland for about 100 years. In 1926, the first laws concerning lotteries and raffles were enacted in the country:

“The purpose of these laws was twofold: to codify accepted practices regarding lotteries and to prohibit Icelanders from participating in foreign lotteries, thereby preventing the outflow of funds from the country. The laws made lotteries illegal without government approval, and this arrangement has remained largely unchanged since. A few exceptions have been granted for betting activities in the form of special licences, but only to operators working for public benefit. It is prohibited to grant licences to entities intending to run lotteries for profit.”

As far as sports betting in Iceland is concerned, Only Íslenskar getraunir holds a special licence. Despite this, the company’s market share is relatively low, currently at 8%. Nearly all sports betting takes place online.