The Secretary-General of the European Gaming and Betting Association (EGBA), Martin Haijer, has sparked widespread controversy by calling for Iceland to open its gaming market and dissolve the existing monopoly.
In Iceland, gaming options are strictly limited, allowing only a few types of gambling and only a limited number of operators are authorized to provide these services, provided their mission is to fund public welfare. For example, slot machines are operated by Islandsspil, which sponsors the Red Cross and search and rescue plans; another is operated by the University Lottery, which funds the construction and maintenance of nearly all Icelandic university buildings.
Two other operators, Iceland Getspá and Iceland Sweepstakes, provide online and physical gaming services. They use profits to support youth and sports associations.
Haijer (see above picture) states that these regulations limit legal gaming options, leading Icelanders to seek unlicensed operators. He pointed out in a column published in an Icelandic newspaper that this has led to the flourishing of a gambling black market.
"The nature of monopoly is to restrict consumer choice," Haijer said, "Online gaming is a price-driven market. People gamble with their own money and naturally want to maximize their potential returns. By restricting consumer choice through monopoly, it often brings more problems rather than solving them. Those who want to bet on sports results or participate in other forms of gambling look for options that offer better returns than monopoly companies. This search sometimes leads them to unsafe sites operated by dubious operators."
Earlier this year, a report in the Iceland Review magazine stated that Icelanders spend about 20 billion Icelandic krona (about 146 million US dollars) annually on unregulated foreign gambling sites.
Models of Denmark and Sweden
Haijer advocates that Iceland consider adopting models similar to those of Denmark and Sweden. Denmark regulated its market in 2012, followed by Sweden in 2019.
"The experience of these two countries shows that ending the monopoly and introducing a licensing system has had a positive impact on the market and has not led to an increase in unhealthy online gambling," he wrote.
Is it safer for players?
Addressing concerns about the social impacts of opening the market, Haijer wrote: "On the contrary, this change is to create a safer regulated environment than the current environment in Iceland."
Response from Iceland
Pétur Hrafn Sigurðsson, chairman of the Breiðablik basketball league, town representative, and information officer for Iceland Getspá/Sweepstakes, responded to Haijer's remarks. He noted that Haijer is "a general manager representing an association of six gaming companies, all of which are considered to have violated Icelandic law."
Sigurðsson stated that licensed operators like Iceland Getspá and Iceland Sweepstakes make "thoughtful and responsible gaming decisions" aimed at preventing gambling-related harm. In contrast, he criticized the foreign companies advocated by Haijer, reviewing their history on gambling-related issues. These issues, he wrote, are related to aggressive marketing strategies, such as offering bonuses to attract young and new customers.
He further explained: "Foreign illegal gambling companies offer hundreds of games. Studies show that gambling addiction is influenced by the number of available games and feedback to bettors. To reduce this risk, Iceland Sweepstakes chooses to offer only 12 to 25 games per day, which are only available for betting during the match, with no games at night."
