Sports betting is legal in Iceland but only when operated on a not-for-profit basis, as established by gambling laws dating back to 1926 (1). The Ministry of Justice holds overarching responsibility for supervising and enforcing gambling legislation in Iceland, while the Financial Services Authority (FSA) regulates the limited legal gambling activities permitted within the country.
Lotteries can only be operated by permission of a District Commissioner and must be for the purpose of raising funds for public benefit in Iceland (2). Special rules apply to lotteries with cash prizes, which cannot be operated without special statutory authorization from the appropriate government authorities.
"Lotteries can only be operated by permission of a District Commissioner, and for the purpose of raising funds for public benefit in Iceland."
The only legal gambling operations in Iceland are state-sanctioned lotteries and certain charitable betting activities, with no commercial gambling establishments permitted. Íslandsspil operates in-person lottery and sports markets, while the University of Iceland has been granted permission to operate slot machines and lotteries for fundraising purposes. Despite restrictive local laws, the government does not prevent citizens from accessing international online sports betting sites, creating a practical tolerance for offshore gambling activities.
Source:
https://legalpilot.com/country/iceland/
https://www.government.is/topics/consumer-affairs/lotteries/
Last updated: 15-09-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
