Iceland Maintains Strict Online Casino Regulatory Approach
Jacob Mitchell 
Key Takeaways:
- Iceland lacks an established domestic commercial online casino market.
- No universal Icelandic licence is available for private online casino operators.
- Regulatory responsibilities are divided among the Ministry of Justice and district commissioners.
- International gambling licences do not grant authorisation for operations in Iceland.
- Certain gambling forms, including specific lotteries, are permitted under distinct legislation.
Iceland maintains a strict approach to gambling, with no established market for domestic commercial online casinos that can obtain a universal Icelandic licence. This means private operators cannot offer a standard range of casino games such as slots, roulette, or blackjack within the country under a national licence. Instead, specific forms of gambling are permitted under particular legislation and require relevant authorisations.
Regulatory Framework and Responsibilities
The Icelandic regulatory model differs significantly from systems with a centralised authority issuing online casino licences. Regulatory responsibilities are divided between legislation, the Ministry of Justice, and district commissioners, depending on the specific activity. For instance, permits for certain types of lotteries are issued by district commissioners, whose decisions can be appealed to the Ministry of Justice.
Iceland does not have a single specialised regulator for commercial online casinos comparable to authorities in regulated online casino markets. Administrative responsibilities for permitted gambling activities are assigned to district commissioners, who operate under the Minister of Justice. The District Commissioner of South Iceland, for example, is responsible for issuing lottery permits and supervising gaming machines in accordance with relevant legislation.
Permitted Activities and International Licensing
The situation surrounding online casinos in Iceland is sometimes described as a “grey area,” though it is more accurate to state that Iceland lacks a separate open licensing framework for a private commercial real money casino market. This means there is no equivalent of a universal national licence for conventional online casino operations.
However, certain forms of real money casino games are permitted within the domestic market and are governed by specific legislation. These include particular types of lotteries. Official regulations also govern the activities of Íslensk getspá and the operation of number-draw lottery games such as Lottó, Joker, Vikinglotto, and EuroJackpot. These activities operate under specific authorisation procedures.
Since Iceland does not have an open commercial licensing system for private online casinos, licences issued by other countries and territories do not constitute Icelandic authorisation. The international gambling industry operates under various regulatory systems, each applicable within its respective jurisdiction. For example, a licence from the Malta Gaming Authority (MGA), the UK Gambling Commission (UKGC), or Curaçao does not mean an operator has received authorisation from Icelandic authorities to conduct gambling activities in Iceland.
