Online casinos are not legal in Iceland under current gambling legislation. The country maintains some of the strictest gambling laws in Europe, with most forms of gambling prohibited except for specific state-controlled activities. Iceland's gambling framework is highly restrictive, allowing only limited forms of gaming such as state lotteries, sports betting through authorized operators, and electronic gaming machines operated for charitable purposes (1).
The regulatory oversight of gambling activities in Iceland falls under the jurisdiction of the Ministry of Justice, which holds comprehensive responsibility for supervising and enforcing all gambling legislation throughout the country. Only specifically authorized organizations are permitted to offer certain gambling services under strict government regulation, including charitable lotteries and bingo operations (2).
"Lotteries can only be operated by permission of a District Commissioner, and for the purpose of raising funds for public benefit in Iceland. Special rules apply to lotteries with cash prizes, which cannot be operated without a special statutory authorisation."
While land-based casinos and online casino operations remain illegal within Iceland's borders, the government does not actively prosecute individual players who access offshore gambling sites. However, unlicensed gambling operators are prohibited from advertising their services to Icelandic residents. The current legal gambling market is limited to monthly lotteries, electronic gambling machines, scratch cards, national lotto games, and sports pools, all operating under strict government control and oversight (1)(2).
Source:
https://www.government.is/topics/consumer-affairs/lotteries/
https://legalpilot.com/country/iceland/
Last updated: 26-07-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
