Martin Haijer, Secretary-General of the European Gaming and Betting Association (EGBA), has stirred controversy by urging Iceland to open its gambling market and dismantle the existing monopoly.

In Iceland, gambling options are highly restricted, with only a few types permitted and a limited number of operators authorised to offer them, provided their mission is to finance general interest causes. For instance, slot machines are operated by Islandsspil, which sponsors the Red Cross and search and rescue programmes, and by the University Lottery, which has funded the construction and maintenance of nearly all University of Iceland buildings.

Two other operators, Icelandic Getspá and Icelandic Sweepstakes, offer both online and physical gambling. They redirect their profits to benefit youth and sports associations.

Impact on channelisation

According to Haijer (pictured above), these regulations have restricted legal gambling options, driving Icelanders to seek out unlicensed operators. As a result, the black market for gambling has flourished, he notes in a column published in an Icelandic newspaper.

“It is the nature of monopolies to limit consumer choice,” Haijer said. “Online gambling is a price-driven market. People play with their own money and naturally want to maximise their potential returns. Attempts to limit consumer choice through monopolies therefore create more problems than they solve. Those who want to bet on the outcome of sports matches or engage in other forms of gambling look for options that offer better returns than the monopoly companies. That search sometimes leads them to unsafe websites run by dubious operators.”

A report earlier this year by Iceland Review magazine claimed that Icelanders spend about ISK 20 billion ($146 million) on unregulated foreign gambling websites annually.

Denmark and Sweden models

Haijer is advocating for Iceland to consider adopting a model similar to those in Denmark and Sweden. Denmark regulated its market in 2012, and Sweden followed suit in 2019.

“The experience from both countries shows that ending monopolies and introducing a licensing system had a positive effect on the market and did not lead to an increase in unhealthy online gambling,” he wrote.

Safer for the players?

Addressing concerns about the potential social impacts of opening the market, Haijer wrote: “On the contrary, such a change is about creating a regulated environment that is safer for players than the current environment in Iceland.”

Icelandic response

Pétur Hrafn Siguresson, chairman of Breieablik’s basketball league, town representative, and information officer for Icelandic Getspá/Sweepstakes, responded to Haijer. He pointed out that Haijer is “the managing director of an association representing six betting companies, all of which are known to violate Icelandic laws.”

Siguresson asserted that licensed operators like Icelandic Getspá and Icelandic Sweepstakes make “well-considered decisions with responsible gaming in mind,” aimed at preventing gambling-related harm. In contrast, he criticised the foreign companies Haijer advocates for, recounting their history of creating gambling-related issues. These problems, he wrote, are linked to aggressive marketing practices, such as offering bonuses to attract younger and new customers.

He further explained, “Foreign illegal betting companies offer hundreds of games. Research indicates that gambling addiction is influenced by the number of games available and the feedback provided to bettors. To mitigate this risk, Icelandic Sweepstakes has chosen to offer only 12 to 25 games per day, all of which can be bet on only during the game itself, with no games available at night.”

Opposing firmly Haijer’s proposal, he concluded: “Those who play at these betting sites (unlicensed in Iceland) are fourteen times more likely to develop a gambling problem and gambling addiction than those who do not”.

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