Iceland

Iceland is one of Europe’s most restrictive markets, with no licensing regime open to private commercial gambling operators; only narrowly defined lotteries and sports pools are permitted on a not-for-profit basis with proceeds to charitable/sporting causes. Domestic legal sports betting runs through Íslenskar Getraunir / Íþróttalottó (football, basketball, handball pools) and lotteries through Íslensk Getspá, authorized under special legislation rather than a general gambling licence.

Lotteries are licensed and supervised by District Commissioners, with gambling policy under the Ministry of Justice; there is no dedicated standalone gambling regulator. Despite the monopoly, offshore betting and casino sites are easily accessible and widely used — Icelanders are estimated to wager roughly ISK 20bn (~EUR 134m) per year offshore — placing private online sports and horse-race betting in a grey market that is unlicensed but not enforced against individual players (there is no domestic licensed horse-race channel).

In 2024-2026 reform pressure intensified, with the EGBA urging a Nordic-style open licensing model and the Justice Minister signalling the status quo is untenable; draft legislation and debate on creating a national regulator are expected. Minimum age 18 (one source cites 20 — flagged). Prediction markets have no legal domestic route and are treated as prohibited.

Iceland sports betting laws are restrictive on paper but permissive in practice. Although the law prohibits most forms of gambling, the state does not prevent individuals from visiting offshore sports betting sites. In short, online sports betting is widely available in Iceland.

The Iceland betting sites operate under licenses held in other European nations, including the UK, Gibraltar, and Malta. Local lawmakers are now openly weighing reform of the Iceland online betting industry, with the Justice Minister exploring Nordic-style licensing of foreign operators, so the status quo may not last much longer.

Iceland Betting Sites

Very few Iceland sports betting sites natively support króna deposits, but that’s a minor issue because they provide automatic currency exchanges at current market rates whenever customers deposit or withdraw.

Finding betting sites that offer their services in Íslenska is a more difficult proposition, but at least one operator offers it as a language setting. Otherwise, bettors will find Iceland’s online sportsbooks easy to use, with quick deposits, prompt payouts, and thousands of daily betting markets.

22Bet Iceland

22Bet is a well-rounded betting site that not only supports króna deposits but also offers an Icelandic version of its website – a rare thing in online betting. In addition, 22Bet supports more deposit methods than others, including more than two dozen cryptocurrencies.

Daily betting markets include hundreds of football matches plus an entire world of other sports leagues and esports.

• Does it accept Iceland customers: Yes

• Does it support Íslenska: Yes

• Does it accept ISK deposits: Yes

• Read more: 22Bet Review

bet365 Iceland

Bet365 is one of the operators recorded for Iceland, and it has a long-established reputation going back nearly a quarter century and is one of the only online sportsbooks that shows it genuinely appreciates its customers – likely because it’s still a private, family-owned company.

On the technical side, Bet365 Iceland provides a massive wagering menu, extensive in-play football betting matches, live video, and real-time stats. Bet365’s accepted Iceland deposit methods include debit cards (Visa, Mastercard, Maestro), credit cards (Visa, Mastercard), Paysafecard, wire transfers, and Neteller.

• Does it accept Iceland customers: Yes

• Does it support Íslenska: No

• Does it accept ISK deposits: Yes

• Read more: Bet365 Review

Iceland Betting Sites and the Law

Iceland law prohibits most forms of gambling, but it does not necessarily criminalize individuals from participating in sports betting. The Iceland Penal Code outlaws participation in gambling only to the extent that someone earns a professional living off betting or inducing others to bet.

Article 183 of the Penal Code States:

“Any person who makes gambling or betting, or inducing other persons to indulge in them, his or her livelihood, shall be fined… or imprisoned for up to 1 year in the case of a serious offence.”

Additionally, Article 184 prohibits anyone from operating a gambling space:

“Any person who earns income, directly or indirectly, from having gambling or betting take place in premises under his or her control shall be fined… or imprisoned for up to 1 year.”

Neither provision criminalizes the mere act of betting on sports, and it's debatable if the government could even make a case prosecuting an individual for being a professional sports bettor. In any case, the government has never targeted individuals for betting on sports and has never given an indication that will change.

Additionally, the government does not prevent bettors from accessing online betting sites in Iceland. Unlike some European countries, Iceland does not practice internet censorship or target financial transactions related to online sports betting.

Iceland Horse Racing Betting

Iceland has rich equestrian culture famed for its sturdy horses and their five natural gaits. However, Iceland is neither a significant participant in the modern horse racing circuit nor home to major racetracks.

However, fans can visit international sports betting sites like the ones featured on this page to bet on horse races from anywhere in Iceland. Most Iceland betting sites cover horse racing to varying extents, with the most prominent operators generally providing the most comprehensive coverage.

For Iceland horse racing betting, Bet365 covers an international range of events, offers fixed-odds betting, and provides access to pari-mutuel pools in some countries.

Horse racing betting sites covered on this page:

• Bet365

• 22Bet

• William Hill

• Betsson

Other Legal Forms of Gambling in Iceland

Iceland began regulating gambling in 1926 with a law banning all lotteries in response to concerns that too many krónur were going overseas to foreign lotteries. However, officials eased the restriction in 1933 so that the University of Iceland could use a lottery to raise funds for public education.

The government eased Iceland’s gambling laws several more times over the years to permit a national lottery and allow it to sell lottery tickets online at lotto.is. Additionally, the University of Iceland may raise funds via slot machines, while Íslandsspil may place electronic gaming machines at select locations to raise funds for two charitable causes:

• The Red Cross

• The Icelandic Association for Search and Rescue

Íslandsspil machines in kiosks and shops take stakes of 10-300 ISK with top prizes in the 20-30,000 ISK range, while machines in gaming halls and licensed premises serving alcohol take stakes of up to 300 ISK with top prizes in the 20-300 thousand ISK range. Across all Íslandsspil machines the average return to player is 92%.