Iceland Faces Growing Pressure to Reform Gambling Oversight

Public Health Takes Center Stage

The debate intensified after the Ministry of Health signed a new agreement with SÁÁ, Iceland’s national addiction treatment association, to provide state-funded therapy for gambling addiction for the first time. The move acknowledges problem gambling as a major public health concern and has reignited calls for legislative reform that has been neglected for more than two decades.

Health Minister Alma D. Möller described gambling addiction as “a major social and public health problem,” noting that Icelanders spend around ISK 36 billion (€250 million) annually on unlicensed online gambling sites.

The figures underline how little market share is held by Iceland’s two licensed operators, Íslensk Getspá/Getraunir and the University of Iceland Lottery, compared to foreign-based platforms that dominate the market.

Lack of Enforcement and Advertising Control

Despite the scale of the issue, enforcement remains almost nonexistent. Media outlets face no penalties for promoting unlicensed gambling websites, and payment providers are free to process transactions for offshore companies without consequence.

Observers point out that advertising for major international betting brands regularly reaches Icelandic audiences through global media channels, revealing the absence of any meaningful oversight or regulatory deterrent.

Calls for a Unified Regulator

Civil-society groups and lawmakers, including the association Samtök áhugafólks um spilafíkn (SÁS), are urging the creation of a single national authority to regulate gambling, enforce advertising rules, and fund harm-reduction initiatives.

Critics argue that the country’s current legal basis, the Lotteries Act No. 38/2005, is outdated and insufficient to handle digital gambling, cross-border payments, and modern consumer protection standards.

Legislative Review on the Horizon

Minister Möller stated that Iceland must “look at how neighbouring countries regulate this activity” and ensure that any new framework places public health and consumer protection at its core.

“To take money from an industry that exploits addiction and can have such severe consequences is simply not morally acceptable,” she said.

Parliament is expected to take up the issue before the end of the year. Lawmakers will consider whether Iceland should establish a unified regulator, strengthen advertising restrictions, and enhance cooperation between ministries on financial monitoring, media accountability, and addiction prevention.