Iceland proposes licensing system for gambling operations to boost tax revenue

Iceland’s gambling industry is poised for significant regulatory changes as the Business Council proposes the implementation of a licensing system for betting operations. According to the Council, this move could generate approximately 5 billion Icelandic krónur (around $36 million) in tax revenue for the government.

Björn Brynjúlfur Björnsson, the CEO of the Business Council, notes that the average Icelander spends about 80,000 krónur annually on gambling. The market for betting has experienced rapid growth in recent years, with many activities shifting beyond Iceland’s borders. As it stands, the lack of taxation and regulations means the government is missing out on substantial revenue from this rising sector.

The Council’s announcement emphasizes that few nations engage in gambling as extensively as Iceland, highlighting that government prohibition has not deterred public interest in betting. In light of this, the Council suggests compensating current licensed operators with tax revenues that could reach up to 5 billion krónur per year. This funding could help support various initiatives, including sports development and rehabilitation programs.

Björnsson’s comments underscore the significance of the proposed licensing system not just for revenue generation, but also for enabling a safer and more regulated gambling environment within the country. As the discussion surrounding gambling legislation evolves, the focus remains on balancing economic opportunities with responsible gambling practices.