Skip to content
iGaming Times

Choose your emails

Which emails would you like?

Independent industry intelligence in your inbox. We will email you a link to confirm the emails you ticked, and every email carries a one-click unsubscribe link. Each list can be left on its own.

Sovereign state
Europe
ISO IS

Iceland: gambling regulation and licensing

Republic of Iceland

  • Online sports bettingMonopoly
  • Online casinoProhibited
  • Online pokerProhibited
  • iLotteryMonopoly
  • Land-based (reference)Monopoly
Regulator
Ministry of Justice
Headline tax
Not yet verified
Licence required
Yes
Last verified
23 Sept 2026

Summary

Iceland runs one of the most closed gambling markets in Europe. There is no licensing regime for commercial operators, domestic or foreign. Article 2 of the Lotteries Act No. 38/2005 allows gambling for money only under a specific Act of Althingi, and six operators hold one: Íslensk getspá (Lotto, Vikinglotto and EuroJackpot), Íslenskar getraunir (sports pools and the fixed-odds game Lengjan, sold online and in play), the University of Iceland Lottery (HHÍ, a class lottery plus gaming machines), the DAS and SÍBS class lotteries, and Íslenskir söfnunarkassar, a slot machine company now owned by the Red Cross and the rescue association Landsbjörg. Profits fund sport, disability, the university, elderly housing and rehabilitation. The authorisations for HHÍ, Getspá, DAS and SÍBS run to 1 January 2034. The Ministry of Justice administers the Act and supervises the statutory games through appointed supervisors and lottery councils. The District Commissioner for South Iceland licenses non-cash charity lotteries. None of the gambling Acts levies a gambling duty: winnings from the statutory games are exempt from all public levies, and HHÍ pays 20% of net annual profit, capped at ISK 150 million, as a licence fee. Online casino and poker are prohibited. Running lottery or betting activity in Iceland without a licence, or advertising a lottery not licensed in Iceland wherever it is run, carries a fine or up to six months in prison, a year if extensive or repeated. Iceland has no DNS or payment blocking. A 2022 report to the Minister, which the working group did not adopt jointly, cited an H2 Gambling Capital estimate of about ISK 5.7 billion in offshore sites' gross gaming revenue from Iceland in 2021 and proposed licensing online gambling. No bill is on the Government's plan for 2026 to 2027, but the Minister took lottery policy to the Cabinet in March and August 2026.

Common pitfalls

Iceland is often listed as banning sports betting outright. It does not: Íslenskar getraunir holds a statutory monopoly and sells fixed-odds betting, including in play, on its website. The rest of the market is closed by an express statutory bar on money gambling without a dedicated Act, not by omission, so there is no licence to apply for. The absence of DNS or payment blocking does not make offshore supply lawful: advertising an unlicensed lottery is an offence even when it is run abroad. Nor is there a gambling regulator in the European sense; the Ministry of Justice and a District Commissioner share the role.

Key facts

Regulator
Ministry of Justice
Regulator type
Government ministry
Headline tax
Not yet verified
Licence required
Yes
Minimum age
18+
Tax base
None of the gambling Acts levies a gambling duty. The statutory operators fund good causes from profit under their Acts; HHÍ also pays a licence fee of 20% of net annual profit, capped at ISK 150 million.
Capital
Reykjavík
Currency
ISK
Official languages
Icelandic

Licensing

Licence required
Yes
Application window
Not yet verified
Local establishment required
Not yet verified
Local server required
Not yet verified
Notable licensees
Íslensk getspá, Íslenskar getraunir, Happdrætti Háskóla Íslands (HHÍ), Íslenskir söfnunarkassar (Íslandsspil), Happdrætti DAS, Happdrætti SÍBS
Barriers to entry
Structural rather than procedural. Money gambling needs its own Act of Althingi (Lotteries Act, art. 2(2)), and the six existing authorisations name their holders. The only administrative licence is for non-cash lotteries by EEA-established bodies raising funds for public benefit in Iceland, at most three a year. There is no route for a commercial operator, domestic or foreign.

Licence types

  • Statutory exclusive right: Íslenskar getraunir

    Scope
    Sports pools and fixed-odds sports betting (Lengjan, Lengjan beint), at outlets and on its website (Act 59/1972; Regulation 166/2016)
    Term
    Statutory; no expiry stated in the Act
    Fee basis
    No application route. Supervision costs are charged to the company (Act 59/1972, art. 5).
  • Statutory licence: Íslensk getspá

    Scope
    Number games: Lotto, Jóker, Vikinglotto and EuroJackpot, including play by computer or phone (Act 26/1986; Regulation 1170/2012)
    Term
    Until 1 January 2034
    Fee basis
    No application route; granted by the Minister to the company named in the Act.
    Renewal terms
    Requires an Act of Althingi to extend.
  • Statutory licence: Happdrætti Háskóla Íslands (HHÍ)

    Scope
    Class lottery, instant and other money lotteries, and linked gaming machines (Act 13/1973)
    Term
    Until 1 January 2034
    Fee basis
    Licence fee to the Treasury of 20% of net annual profit, capped at ISK 150 million (art. 1).
    Renewal terms
    Requires an Act of Althingi to extend.
  • Statutory licence: Íslenskir söfnunarkassar

    Scope
    Unlinked cash-prize slot machines, up to 650 (Act 73/1994; Regulation 320/2008)
    Term
    No expiry stated in the Act
    Fee basis
    No application route.
  • Statutory class lotteries: DAS and SÍBS

    Scope
    Monthly class lotteries (Acts 16/1973 and 18/1959); cash prizes permitted (Act 13/1973, art. 7)
    Term
    Until 1 January 2034
    Fee basis
    No application route.
    Renewal terms
    Requires an Act of Althingi to extend.
  • Lottery licence (Lotteries Act)

    Scope
    Non-cash lotteries by EEA-established associations or institutions raising funds for public benefit in Iceland (Lotteries Act, arts. 2 and 3; Regulation 530/2006)
    Term
    Sales period of up to three months; normally one draw
    Fee basis
    Licence fee under the State Revenue (Fees) Act (Lotteries Act, art. 8); the licensee may be required to contribute to problem gambling research and prevention (art. 5).
    Renewal terms
    At most three licences per holder per calendar year (art. 3).

Taxation

Headline GGR tax
Not yet verified
Effective date
Not yet verified
Player winnings tax
Winnings from HHÍ, Íslenskar getraunir, Íslensk getspá, the DAS and SÍBS lotteries and the collection boxes are exempt from all public levies under their own Acts. Other winnings in lotteries, bets or competitions count as taxable income, except low-value winnings in general lotteries and competitions (Income Tax Act 90/2003, art. 7 A(4)).
Tax base
None of the gambling Acts levies a gambling duty. The statutory operators fund good causes from profit under their Acts; HHÍ also pays a licence fee of 20% of net annual profit, capped at ISK 150 million.

Earmarked levies

  • HHÍ licence fee: 20% of net annual profit, capped at ISK 150 million (State Treasury)

Compliance

Minimum age
18+
National self-exclusion
Not yet verified
AML regime
Holders of licences under the Lotteries Act or the special lottery Acts are obliged entities under the AML Act 140/2018 (art. 2(1)(t)). The national risk assessment quoted in the 2022 Ministry of Justice working group report rated money-laundering risk from slot machines and gaming machines as high and from ticket lotteries and Lotto as low.
AML supervisor
Ríkisskattstjóri (Directorate of Internal Revenue)
KYC requirements
Not yet verified
Stake limits
Lengjan: ISK 100 to 12,000 per slip at outlets and ISK 200 to 20,000 on the Íslenskar getraunir website, up to ISK 420,000 for system slips (Regulation 166/2016, art. 27). Pools: no more than SEK 100,000 per coupon per round (art. 17). Collection boxes: maximum stake ISK 300 a game and maximum prize ISK 5,000,000 (Regulation 320/2008, arts. 6 and 7, as amended by Regulation 1035/2024). HHÍ gaming machines: maximum stake ISK 300 a game (Regulation 455/1993, art. 5).
Reporting obligations
Lottery licensees must file reports or accounts as the minister decides, and the supervisor may recover the cost of experts reviewing reports, software or equipment (Lotteries Act, arts. 9 and 10). Íslenskar getraunir accounts are audited by the National Audit Office (Act 59/1972, art. 6); HHÍ sends audited accounts to its lottery council (Regulation 500/2020, art. 8).
Game content restrictions
Collection boxes may not be linked or share a jackpot, a game may not last less than 2 seconds and at least 89% of stakes must be returned as prizes (Regulation 320/2008). HHÍ machines may be linked and share jackpots (Regulation 455/1993). Licensed non-cash lotteries must return at least 16.67% of ticket value (Lotteries Act, art. 7).

Minimum age by vertical

  • Land-based (reference): 18+

Advertising

Advertising permitted
Yes
Affiliate rules
No licensing of affiliates. Promoting an unlicensed lottery is caught by art. 11(1)(b) of the Lotteries Act; the 2022 working group discussed an express ban on affiliates without agreeing one.
Penalties for breach
Fine or up to six months in prison, or up to one year where the offending is extensive or repeated; companies can be fined (Lotteries Act, art. 11).

Restrictions

  • Only games run under Icelandic law may be promoted. Advertising, promoting or passing on any information about a lottery not licensed under the Lotteries Act is an offence whether it is run in Iceland or abroad (Lotteries Act, art. 11(1)(b)).
  • Advertising or promoting a licensed lottery commercially without the licensee's permission is punishable by a fine (art. 11(3)).
  • While HHÍ operates, foreign lottery tickets may not be sold or advertised in domestic papers (Act 13/1973, art. 2).
  • Íslenskar getraunir, Íslensk getspá, HHÍ and the other statutory operators may market their own games.

Payments

Credit card ban
Not yet verified
Crypto stance
Not yet verified
Permitted methods
HHÍ tickets by recurring card debit or bank transfer; HHÍ and its agents may not sell tickets on credit (Regulation 500/2020), Collection boxes accept Icelandic coins and notes, and since Regulation 1035/2024 electronic payment of stakes and prizes (Regulation 320/2008, art. 6)
Payment blocking regime
None. No Icelandic law requires banks or payment firms to block gambling payments. The 2022 working group chair proposed licensing offshore operators and giving the authorities powers to block the websites of, or ban payments to, those that did not apply; the incumbent operators proposed banning payment processing for illegal online gambling.

Enforcement

ISP blocking
No
DNS blocking
No
Payment blocking
No
App store takedowns
Not yet verified
Criminal penalties
Lotteries Act, art. 11: fine or up to six months for running lottery or betting activity in Iceland without a licence or for advertising an unlicensed lottery, up to one year if extensive or repeated. Penal Code arts. 183 and 184: fine or up to one year. HHÍ Act, art. 6: fine or up to two years. Sports Pools Act, art. 10 and Collection Boxes Act, art. 5: fines, with confiscation of equipment and funds under the latter.
Operator liability
Liability is criminal only; there is no administrative sanction regime and no gambling regulator with enforcement powers. The 2022 working group report found that Icelandic law has no specific provisions for dealing with illegal online gambling and that the activity of offshore sites is not supervised. No enforcement action against an online operator was found in the sources read.
Player liability
No provision read makes taking part an offence. Penal Code art. 183 targets those who make gambling or betting a livelihood or induce others to take part.

Timeline

  1. 31 Jul 1959

    SÍBS Lottery Act No. 18/1959 enters into force.

  2. 9 Jun 1972

    Sports Pools Act No. 59/1972 enters into force, creating Íslenskar getraunir.

  3. 14 May 1973

    University of Iceland Lottery Act No. 13/1973 and DAS Lottery Act No. 16/1973 enter into force.

  4. 12 May 1986

    Number Games Act No. 26/1986 enters into force, the basis for Íslensk getspá.

  5. 30 May 1994

    Collection Boxes Act No. 73/1994 enters into force, and HHÍ may be authorised to run linked gaming machines.

  6. 1 Jul 2005

    Lotteries Act No. 38/2005 enters into force.

  7. 19 Jun 2010

    Advertising unlicensed lotteries run abroad becomes an offence (Act 61/2010).

  8. 1 Jan 2015

    The District Commissioner for South Iceland takes over all lottery licensing.

  9. 31 Dec 2015

    Authorisations for HHÍ, Íslensk getspá, DAS and SÍBS extended to 1 January 2034 (Act 126/2015).

  10. 25 Feb 2016

    Regulation 166/2016 for Íslenskar getraunir takes effect, covering Lengjan and in-play Lengjan beint.

  11. 26 Mar 2021

    Minister of Justice sets up a working group on lottery law reform, including online play and illegal online gambling.

  12. 13 Jan 2023

    Ministry publishes the working group report; members did not agree, and the chair's proposals include licensing online gambling.

  13. 16 Aug 2024

    Ministry publishes the 2023 study of gambling behaviour and problem gambling among adults.

  14. 17 Sept 2024

    Regulation 1035/2024 raises the collection box maximum prize to ISK 5,000,000, sets a single ISK 300 stake limit and allows electronic payment.

  15. 3 Mar 2026

    Minister of Justice presents a comparison of the Nordic lottery markets to the Cabinet.

  16. 28 Aug 2026

    Lottery affairs on the Cabinet agenda, presented by the Minister of Justice.

  17. 8 Sept 2026

    The 158th session of Althingi opens; the Government's legislative plan contains no gambling bill.

Outlook

No gambling bill appears on the Government's legislative plan for the 158th session (2026 to 2027), and none was introduced in the 157th. The Minister of Justice presented a comparison of the Nordic lottery markets to the Cabinet on 3 March 2026 and put lottery affairs on the Cabinet agenda again on 28 August 2026; no proposals have been published. The 2022 chair's report remains the most detailed official reform plan: a single Lotteries Act, licensing of online gambling, online play for the incumbents, player cards linked to electronic ID, a prevention fund and supervision by the Central Bank's Financial Supervisory Authority. The incumbent operators objected to it. The authorisations for HHÍ, Íslensk getspá, DAS and SÍBS expire on 1 January 2034, so Althingi must act before then.

Frequently asked questions

Can a foreign operator obtain an Icelandic online gambling licence?
No. Gambling for money may be run only under a specific Act of Althingi naming the operator (Lotteries Act, art. 2(2)). The only administrative licence is for non-cash lotteries by EEA-established bodies raising funds for public benefit in Iceland.
Is online sports betting legal in Iceland?
Only through Íslenskar getraunir, which has the sole right to sports pools and runs the fixed-odds game Lengjan and in-play Lengjan beint, including on its website. Other betting on sport needs specific statutory authority (Act 59/1972, art. 10).
Who regulates gambling in Iceland?
The Ministry of Justice administers the Lotteries Act and supervises the statutory operators through appointed supervisors and lottery councils. The District Commissioner for South Iceland issues lottery licences, and the Directorate of Internal Revenue supervises licensees for anti-money laundering.
Is it an offence to advertise offshore gambling sites to Icelandic players?
Yes. Advertising, promoting or passing on information about a lottery not licensed in Iceland is punishable by a fine or up to six months in prison, a year if extensive or repeated, whether the lottery is run in Iceland or abroad (Lotteries Act, art. 11).
Are gambling winnings taxed in Iceland?
Winnings from the statutory operators are exempt from all public levies under their Acts. Other lottery, betting or competition winnings are taxable income, except low-value winnings in general lotteries and competitions (Income Tax Act, art. 7 A(4)).
Is Iceland planning to open its online market?
Not on current evidence. A 2022 report to the Minister proposed licensing online gambling, but no bill is on the Government's plan for the 2026 to 2027 session. Lottery affairs were before the Cabinet in March and August 2026, and the main authorisations expire on 1 January 2034.

Sources

  1. Lög um happdrætti nr. 38/2005 (Lotteries Act), as amended

    Alþingi (Lagasafn, version 157c, 1 September 2026)

    Tier 1Accessed 23 Sept 2026Published 13 May 2005
  2. Tier 1Accessed 23 Sept 2026Published 13 Apr 1973
  3. Lög um getraunir nr. 59/1972 (Sports Pools Act)

    Alþingi (Lagasafn, version 157c, 1 September 2026)

    Tier 1Accessed 23 Sept 2026Published 29 May 1972
  4. Lög um talnagetraunir nr. 26/1986 (Number Games Act)

    Alþingi (Lagasafn, version 157c, 1 September 2026)

    Tier 1Accessed 23 Sept 2026Published 2 May 1986
  5. Lög um söfnunarkassa nr. 73/1994 (Collection Boxes Act, slot machines)

    Alþingi (Lagasafn, version 157c, 1 September 2026)

    Tier 1Accessed 23 Sept 2026Published 19 May 1994
  6. Tier 1Accessed 23 Sept 2026Published 13 Apr 1973
  7. Tier 1Accessed 23 Sept 2026Published 22 Apr 1959
  8. Almenn hegningarlög nr. 19/1940 (General Penal Code), articles 183 and 184

    Alþingi (Lagasafn, version 157c, 1 September 2026)

    Tier 1Accessed 23 Sept 2026
  9. Lög um tekjuskatt nr. 90/2003 (Income Tax Act), article 7 A(4)

    Alþingi (Lagasafn, version 157c, 1 September 2026)

    Tier 1Accessed 23 Sept 2026
  10. Tier 1Accessed 23 Sept 2026Published 25 Feb 2016
  11. Tier 1Accessed 23 Sept 2026Published 26 Jan 2013
  12. Tier 1Accessed 23 Sept 2026Published 29 May 2020
  13. Tier 1Accessed 23 Sept 2026Published 15 Nov 1993
  14. Reglugerð um söfnunarkassa nr. 320/2008 (Collection Boxes Regulation)

    Stjórnartíðindi B, via Ísland.is reglugerðasafn

    Tier 1Accessed 23 Sept 2026Published 4 Apr 2008
  15. Tier 1Accessed 23 Sept 2026Published 1 Jan 2007
  16. Tier 1Accessed 23 Sept 2026Published 29 Jun 2006
  17. Tier 1Accessed 23 Sept 2026
  18. Tier 1Accessed 23 Sept 2026Published 27 Aug 2026
  19. Tier 2Accessed 23 Sept 2026Published 28 Apr 2021
  20. Tier 2Accessed 23 Sept 2026Published 13 Jan 2023
  21. Tier 2Accessed 23 Sept 2026Published 3 Mar 2026
  22. Tier 2Accessed 23 Sept 2026Published 28 Aug 2026
  23. Reglugerð nr. 1035/2024 um breytingu á reglugerð um söfnunarkassa nr. 320/2008 (amending the Collection Boxes Regulation)

    Stjórnartíðindi B

    Not yet consolidated into the Ísland.is text of Regulation 320/2008, which still shows the 2018 prize limits and SÁÁ as a co-owner.

    Tier 1Accessed 23 Sept 2026Published 17 Sept 2024

Spotted something out of date? Report a correction.

This page is industry reference information and not legal advice.

Cookie Preferences

Choose which cookies you want to accept. Essential cookies are required for the website to function properly.

Required

Necessary for the website to function. Cannot be disabled.

Help us understand how visitors interact with our website.

Used to deliver relevant advertisements and track ad performance.

Remember your preferences and settings for a better experience.