Icelanders lead in betting as Business Council pushes for foreign licenses

Icelanders are among the highest bettors in Europe, second only to the Irish. According to a recent report, they spend approximately 20 billion ISK (about $150 million) annually on foreign betting websites. The Business Council has proposed that foreign betting companies be granted licenses to operate in Iceland, a suggestion that has met with resistance from representatives of the Icelandic Gaming Authority.

In 2021, former Minister of Justice Áslaug Arna Sigurbjörnsdóttir established a working group tasked with assessing and recommending improvements in this area, including regulations for foreign betting operations.

In a recent program, Björn Brynjólf Björnsson, the CEO of the Business Council, and Pétur Hrafn Sigurðsson, a spokesperson for Icelandic Gaming, discussed the issue. Björn argued that the current ban on foreign betting activities has driven these businesses abroad. The Council’s report suggests that Iceland could follow in the footsteps of Denmark and Sweden by licensing betting companies, allowing them to advertise with restrictions and benefit from tax exemptions on their profits. This approach could help regulate the industry while generating revenue for the country.

Pétur Hrafn emphasized that Icelanders generally believe the proceeds from gambling activities should benefit charitable organizations. However, he warned that allowing foreign private entities into the local lottery market could significantly decrease these funding streams.

He also criticized the oversight of existing foreign betting operations, asserting that without proper enforcement of regulations, it’s hard to trust that these companies will comply if they are granted licenses. Björn added that experiences from other countries indicate that effective regulatory systems, like revenue authorities, could yield substantial benefits for Iceland’s treasury. Currently, Iceland and Norway are the only European countries that do not permit foreign betting operations, resulting in a low share of local online betting at around 20%, compared to 60-90% in countries where it is legalized.