Iceland risks losing control of its gambling crisis
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9 Nov 2025 •
Reading time: 2 minutes The Icelandic government is under pressure to finally implement stricter gambling legislation. The current rules date back to 2005 and are no match for online gambling platforms, international advertising, and foreign financial flows.
Calls for reform have grown louder since the Ministry of Health reached an agreement with the addiction organization SÁÁ. For the first time, state-funded assistance will be made available to gambling addicts.
Minister Alma D. Möller called gambling a serious social problem. Each year, Icelanders spend the equivalent of around €250 million on foreign gambling sites.
Foreign operators dominate the market
Iceland officially has only two legal operators: Íslensk Getspá/Getraunir and the University of Iceland Lottery. In reality, however, international companies dominate the market. The law offers little leverage, allowing media outlets to advertise illegal sites with impunity and banks to freely process payments for these platforms.
There is virtually no oversight. Major gambling brands openly advertise through social media and foreign TV channels. The government does not intervene, simply because there is no clearly designated authority responsible for supervision and enforcement.
One regulator to restore order
Citizen groups such as SÁS and several members of parliament are calling for a national regulatory authority. It should oversee operators, finance addiction prevention, and regulate advertising. Without such a regulator, addiction will continue to grow, they warn.
Critics say the current law is hopelessly outdated. It offers no protection against modern risks such as manipulative apps, digital gambling bonuses, or cross-border advertising.The minister stressed that Iceland must learn from gambling regulations in other European countries. Parliament will debate the future of Iceland’s gambling policy this autumn.