Finding Iceland: A Guide to Poker and Gambling Law

Iceland boasts a booming tourism industry. That would mean all sorts of casino chains to come and establish sites in the island republic, one might reasonably expect – yet unfortunately, far from it.

Iceland has one of the strictest European gambling laws, especially when it comes to land based gambling.

The only types of Iceland casino games of chance available legally in Iceland are lotteries, slot machines, sports betting and bingo. Lottery, in fact, has a very long history in the nation, dating back long ago, the first lottery draw was done ages ago. Initially, it was arranged by corporate entities. Afterwards, its form was modified when the Icelandic government took over.

And as for the slot machines, they were legalized as well. Curiously, it was the University of Iceland that was awarded with operating electronic gaming machines. The legislation demands that all gambling profit be given to charity. Clearly, that is a powerful deterrent to firms.

Icelandic Poker Players Famous

Due to the stern laws on gambling, Iceland never had a chance to foster a true poker star.

On the legendary Hendon live tournament database, an individual by the name of Runar Runarsson heads the Icelandic all time money list – even though he has only 3 cashes under his belt. 

But those 3 cashes add up to $337,300 worth of live tournament cash, more than any other Icelandic player has. The largest portion of that figure is from May, when he placed 2nd in the €10,000 Grand Prix De Paris NLHE tourney for €224,480.

Second is Halldor Mar Sverrisson with $100,945 in winnings. His biggest live tourney victory is in May, when he came 46th in the €10,000 EPT No Limit Hold'em for €19,910 in Monte Carlo.

And online poker, a Reykjavik player known by the screen name "youbetipush" has cashed for more than $1 million in MTT's on various poker websites. On partypoker alone, he totalled $639,991 in wins. Meanwhile, Ingvar "blikinn" Kale has more than $720,000 in MTT cashes on PokerStars.

Online Poker in Iceland

Online Poker Legislation in Iceland

Fortunately, law enforcers are not as keen on preventing internet gambling as they are with land based gambling.

Iceland even hosts a legal sports betting website known as Coolbet. Unfortunately, they do not provide online poker.

However, many large online poker rooms can be played by Icelandic players. PokerStars, partypoker and Natural8 do not exclude players from the country, and Iceland does not censor their sites. Finally, unlike in live poker, players of online poker are never prosecuted in Iceland.

Live Poker in Iceland

Live Poker Legislation in Iceland

• As we noted in our intro, Iceland has extremely prohibitive laws on most gambling. These laws are also largely enforced.
• The lowest level of legal gambling that a person can indulge in Iceland is regulated by the country's Financial Services Authority (FSA).
• The Lotteries and Tombola act prohibited gambling altogether. Subsequently, incrementally a few games of chance were legalized.
• Initially, the old-style lottery draws, then slot machines later on. All proceeds must go to charity as per law. All participants must be above 18 years of age.

There was a recent effort in the Icelandic parliament to legalize casinos on land in the small island nation. The Reykjavík Grapevine reports that it was initiated by Willum Þór Þórsson, of the Progressive Party. He contended that casinos would be an exceedingly good source of additional tax revenue, and creating a regulated market would provide the players with additional protection that they are otherwise being pushed into the black gambling market.

That effort died, however.

Live Poker Rooms in Iceland

Obviously, in this legal environment, no reputable venue is willing to host a game or tournament of poker.

In June, one man, Sindri Lúdvíksson, tried to hold an ISK4,000 ($64) No Limit Hold'em tournament. 150 players participated.

But before a winner was crowned, the police came. They confiscated all of the poker tables, chips and cards as evidence and cleared the building out.

Conclusion

Iceland's gambling policy is one of the toughest in Europe. With laws limiting most forms of on-land gaming, the country has chosen a path in which proceeds from the few legal forms of gaming—lotteries, slot machines, bingo, and sports betting—must be used for charitable purposes rather than for private enterprise. The system has effectively excluded casinos and live poker houses from the country, and the homegrown poker business continues to be underdeveloped.

Despite such limitations, Icelandic players have nevertheless made their influence felt, particularly in the case of internet poker, where regulation is far more lax. With access to leading international sites like PokerStars and partypoker, talented players based in Reykjavik and beyond are still delivering incredible performances, building Iceland's reputation in the virtual world.