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Iceland is viewed around the world as a forward-thinking, self-determined country, but the island nation has some pretty restrictive rules regarding gambling. Read on to learn about Iceland's gambling laws.

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Articles 183 and 184 of Iceland's Criminal Code deem all forms of gambling illegal in the country, with few exceptions. Much of the laws around gambling in Iceland stem from Christian beliefs that gambling is a sin, although the few exemptions over the years show that this sentiment is relaxing somewhat.

Let's check out the legalities of gambling in Iceland by looking at each type of gambling activity in turn.

Casino Games

Land-based casino gaming in Iceland is illegal. There are no proper casinos in the country. Slot machines are legally permitted in Iceland, with venues holding an alcohol licence allowed to host them within their premises. There are a few such slot halls within the country, but nothing on the scale of a proper casino.

These slot halls are operated by either the University of Iceland or the country's gaming company Íslandsspil, which is the funding arm of the Icelandic Red Cross. No other companies are permitted to run slot halls.

Online casino gaming is even more restrictive in Iceland, with the activity deemed illegal by law. Fair competition rules still apply since Iceland is part of the European Economic Area (EEA). What this means is since there is no way for EEA-based companies to obtain a licence from Iceland to operate, Icelanders playing online casino slots, table games, and live dealer games at foreign online casinos cannot be prosecuted.

Poker

While some countries class poker slightly differently than other casino-type gambling activities due to the added element of skill involved, Iceland makes no such distinction. Poker is illegal in Iceland in all forms. That means Icelandic operators run no poker halls or online poker sites. Residents in Iceland wishing to play online poker games can do so via the numerous foreign poker sites that accept players from Iceland.

Bingo

Land-based bingo gambling is legal in Iceland, with most games offered by the University of Iceland or Íslandsspil. The government can also grant special permission to run a bingo operation, but all proceeds must be donated to charity. Only one such operator has been granted special permission, the standalone bingo hall Bingó í Vinabae.

In contrast, online bingo gambling is illegal in Iceland. There is some debate over the classification of bingo as a lottery game, which means it would fall under the monopoly control of the country's lottery operator, Íslensk Getspá. However, this operator doesn't offer online bingo games on its website. The only option Icelanders have for online bingo games is foreign bingo sites.

Lotteries

Physical lottery gambling is legal in Iceland and is the monopoly of Íslandsspil. The Icelandic Red Cross and the Icelandic Association for Search and Rescue (ICE SAR) are the two non-profit organizations running the country's lottery, with lottery sales funding their operations.

Online lottery gambling is also legal in Iceland, with Icelanders able to play online lottery games for real money via Íslensk Getspá's website. Íslensk Getspá is the only company legally permitted to offer online lottery games in the country, but Icelanders can play via foreign lottery sites without facing prosecution.

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Even though the basis of social gambling is playing casino games with play chips, the activity is still classed as online gambling. It is illegal in Iceland, although this isn't enforced (or even enforceable). Neither lootboxes nor skins gambling is mentioned in current Iceland gambling laws.

It's only relatively recently (2018) that Iceland amended its Foreign Exchange Act to regulate cryptocurrencies in the country due to its increasing popularity. However, Bitcoin, Litecoin, Ether and other cryptocurrencies are not regarded as legal tender in the country and cannot be used or accepted by the limited number of gambling establishments in Iceland. Those residing in the country can still play at foreign crypto casinos without prosecution.

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Sports betting is legal in Iceland and has been since 1952. Sports betting in the country is tied to lottery gambling, with each lottery monopoly also serving as a sportsbook. As such, Íslandsspil offers sports betting markets via its retail stores, and Íslensk Getspá allows its visitors to bet on sports via their website.

Fantasy sports betting isn't currently mentioned in Iceland's gambling legislation. Virtual sports betting is classed as online gambling, and since Íslensk Getspá doesn't offer it on their website, the activity is deemed illegal in the country.

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Those wishing to participate in legal gambling in Iceland must be 18 or over.

Tax Regulation

Since most gambling activities are illegal, there is no Iceland gambling tax regulation. VAT does not apply to gambling activities or operations in Iceland. The situation is equally attractive to players, with winnings not subject to tax.

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There's very little information available about the history of gambling in Iceland. However, the first piece of legislation regarding gambling in the country was the Lotteries and Tombolas Act, passed in 1926 and made all forms of gambling illegal.

Sports betting has been legal in the country since 1952. Still, it wasn't until 1994 that the University of Iceland and Íslandsspil were exempted from the legal restrictions and permitted to run limited gambling activities for non-profit purposes.

Articles 183 and 184 of Iceland's Criminal Code were put into place in 1998, outlining that hosting, participating in and advertising gambling (except those exempt, e.g. Íslandsspil, Íslensk Getspá and the University of Iceland) are all illegal activities.

Key Facts

Iceland has some pretty restrictive laws when it comes to gambling. Here's a rundown of the key points regarding Iceland's gambling laws:

• Casino gambling is illegal in Iceland. The only exception is slot machines found in small numbers in alcohol-licensed venues. Online casino gambling, including at online live casino sites, is completely illegal.
• Poker gambling is illegal: No poker halls or Iceland-based poker sites exist.
• Physical bingo gambling is legal: Games are only permitted by the University of Iceland, Íslandsspil or Bingo í Vinabae.
• Online bingo gambling is illegal: Technically, it could come under the monopoly of online lottery operator Íslensk Getspá, but their website doesn't offer the game.
• Lottery and sports betting are legal in Iceland: Íslandsspil offers offline lottery and sports betting, while Íslensk Getspá hosts online lottery and sports betting via its website.