Iceland’s Parliament pressed to overhaul gambling oversight
There are calls for a new centralised regulatory authority to monitor gambling and enforce advertising restrictions.
Iceland.- The Ministry of Health has urged parliament to reform the regulation of gambling in Iceland. It proposes the creation of a centralised regulatory authority that would monitor gambling activity, enforce advertising restrictions and fund harm-prevention initiatives.
The ministry has raised concerns over public health risks, the spread of online betting and the absence of effective state control over unlicensed operators in what is one of the few remaining countries in Europe with no multi-licence framework for gambling. For some time, critics have argued that Iceland’s gambling laws, primarily the Lotteries Act No. 38 of 2005 is outdated and ill-equipped to address the challenges of digital gambling and cross-border financial flows.
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Health minister Alma D. Möller described gambling addiction as a “major social and public health problem,” noting that Icelanders are estimated to spend around ISK 36bn (€250m) a year on unlicensed online betting platforms.
That figure highlights the limited reach of Iceland’s two authorised operators, Íslensk Getspá/Getraunir and the University of Iceland Lottery, showing that many players turn instead to offshore websites, bypassing the state-supervised enterprises.
Enforcement has remained weak. Media outlets face no penalties for promoting unlicensed gambling, nor do banks and payment providers that facilitate transactions with foreign operators. International betting advertisements continue to reach Icelandic audiences through global media channels.
Möller has stressed that Iceland must “look at how neighbouring countries regulate this activity” and ensure that consumer protection and public health remain at the heart of any legislative overhaul. Iceland’s closest neighbours include Norway, Sweden and Finland.
Sweden regulated online gambling in 2019. Norway and Finland still retain state gambling monopolies, but the new Finnish Gambling Act prepares the way for the opening of a competitive licensed market, which is expected to launch for the start of 2027.
The European Betting and Gaming Association has long called for Iceland to also open its gambling market to competition, but this does not appear to be on the cards for now. Iceland’s Parliament is expected to debate the issue before year’s end, with MPs expected to consider whether to establish a unified regulator, tighten advertising rules and strengthen cooperation across ministries.
The revived focus follows an agreement between the Ministry of Health and SÁÁ, Iceland’s national addiction-treatment organisation. The new agreement recognises gambling addiction as a social issue and provides public funding for therapy for the first time.
