The Althing of Iceland has been urged to consider drastic reforms on how gambling is supervised and governed, as concerns mount over public health, online exposure, and the lack of state oversight on illegal gambling.

Calls for change follow the Ministry of Health’s new agreement with SÁÁ, the national addiction-treatment association, which for the first time provides state-funded therapy for gambling addiction – a condition that is recognised as a growing public concern. 

The move has reignited debate over Iceland’s legal inconsistencies on gambling, that have been overlooked for more than two decades without reform. 

No oversight of harms 

Health Minister Alma D. Möller described gambling addiction as a “major social and public health problem”, warning that Icelanders are reported to be spending around ISK 36bn (€250m) per-year on unlicensed online gambling websites.

The figure highlights the limited market reach of Iceland’s two licensed operators — Íslensk Getspá /Getraunir and the University of Iceland Lottery, and confirms that most Icelandic players wager through unlicensed, foreign-based websites with no interaction with the state-owned enterprises.

The liabilities are well known, yet enforcement remains minimal. There are no penalties for media outlets that promote unlicensed websites or payment providers or banks who process transactions for offshore gambling companies.

Observers note that advertising for international betting brands is routinely displayed to Icelandic citizens via international media, with no consequence. 

New regulator needed

Lawmakers and civil-society groups, including Samtök áhugafólks um spilafíkn (SÁS), are now calling for the creation of a single national supervisory authority to oversee gambling activity, enforce advertising rules and fund harm-reduction programmes.

Critics argue that Iceland’s current framework, chiefly the Lotteries Act No. 38/2005, is outdated and unable to address the realities of digital gambling and cross-border payments.

Push for control 

Minister Möller said the government must “look at how neighbouring countries regulate this activity” and ensure that public health and consumer protection remain central to any legislative review.

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

Parliamentary discussions are expected before the end of the year, with MPs weighing whether Iceland should introduce a unified gambling regulator, tighter advertising controls, and stronger inter-ministerial cooperation on financial monitoring, media accountability and addiction support.