EGBA Calls for Iceland to Rethink Monopoly-Based Gambling Market

Martin Haijer, Secretary-General of the EGBA (European Gaming and Betting Association), requested Iceland to reconsider its monopoly-based gambling market, suggesting that the country could benefit from adopting an open licensing regime similar to those in Denmark and Sweden.

EGBA Calls for Iceland to Rethink Monopoly-Based Gambling Market

The European Gaming and Betting Association (EGBA) Secretary-General Martin Haijer has urged Iceland to reassess its monopoly-based gambling market. Haijer believes Iceland can follow in the footsteps of Nordic neighbors Denmark and Sweden by adopting an open licensing regime for gambling operators, which has proven successful in these countries.

The Current State of Iceland's Gambling Market

Only six entities have been granted a gambling license in Iceland, and they are required to invest their proceeds into social causes, leaving little room for private sector involvement. However, this system has led to significant challenges. A report from Iceland Review magazine earlier this year highlighted that Icelanders spend approximately ISK 20 billion (£112 million/€134 million/$146 million) on unregulated foreign gambling websites annually. Haijer warns that Iceland's current system is out of sync with most European countries and does not meet the needs of Icelandic consumers.

Challenges of the Monopoly System

Haijer expressed concerns that monopolies inherently limit consumer choice, particularly in the mainly price-driven online gambling sector. "People play for their own money and naturally want to maximize their potential returns," Haijer explained. He further noted that attempts to limit consumer choice through monopolies often result in more problems than they solve.

Lessons from Denmark and Sweden

Haider pointed to the experiences of Denmark and Sweden, which successfully launched regulated gaming markets in 2012 and 2019, respectively. He emphasized that these countries have established consumer-oriented regulatory frameworks that have positively impacted the market without increasing unhealthy online gambling. The companies that once monopolized these countries have also thrived under the new system. Haijer believes Iceland could achieve similar results but acknowledges that it will require political will and the courage to change direction.

The Path Forward

According to Danish regulator Spillemyndigheden, gambling rates in Denmark increased by 7% in the ten years following the market's opening, with channelization rates reaching 90%. However, challenges remain, particularly in Sweden, where channelization rates are lower, and traffic to unlicensed operators has increased significantly since 2019.

Haijer emphasized that implementing a licensing regime in Iceland would not encourage more people to gamble but would improve customer safety. He acknowledged that such a change would present challenges, as has been the case in other European countries. Still, he is confident Iceland can overcome these obstacles to create a safer, regulated gambling environment.

Conclusion

Haijer's call for a rethink of Iceland's gambling market reflects a growing European trend toward open licensing regimes that prioritize consumer safety and market growth. By following the examples set by Denmark and Sweden, Iceland has the potential to create a more regulated and consumer-friendly gambling environment.