Icelanders reportedly spend nearly 20 billion krónur annually on foreign betting websites

Icelanders are reportedly spending nearly 20 billion Icelandic krónur annually on foreign betting websites, with recent analysis suggesting that the Icelandic government should consider licensing these companies. The Icelandic Gambling Authority’s spokesperson, however, disagrees with this proposal.

Betting has a long history in connection with sports in Iceland, and the recent analysis highlights that Icelanders engage in betting more than almost any other nation in Europe, second only to Ireland. In 2021, then-Minister of Justice Áslaug Arna Sigurbjörnsdóttir established a working group tasked with exploring improvements in betting regulations, which recommended establishing rules for foreign betting operations.

In a recent television discussion, Björn Brynjólf Björnsson, CEO of the Icelandic Chamber of Commerce, asserted that current government restrictions have driven the betting industry abroad. The Chamber’s recent report suggests that Iceland should follow Denmark and Sweden’s lead by issuing licenses for betting companies. This licensing would include advertising rights with some limitations and tax exemptions on profits, providing a legal framework to regulate the industry and generate state revenue.

Pétur Hrafn Sigurðsson, another participant in the discussion, expressed concerns that allowing foreign private entities into the Icelandic lottery market could significantly reduce funds that currently benefit charities.

Moreover, both speakers criticized the current lack of oversight regarding foreign betting companies operating in Iceland. They emphasized that existing laws are not being enforced and highlighted examples from other countries to demonstrate that regulated betting can yield significant benefits for national treasuries. Currently, Iceland and Norway are noted as the only countries in Europe that do not permit operations of foreign betting companies, leading to a low domestic online betting rate of approximately 20%.