European Gaming and Betting Association (EGBA) secretary-general Martin Haijer has called on Iceland to rethink its monopoly-based gambling market and adopt an open licensing regime, similar to those in place in Denmark and Sweden.
In an opinion piece published on the Icelandic news website Visir, Haijer highlighted the limitations of Iceland’s current system.
Under the current framework, the six licensed gambling entities are required to invest their proceeds into social causes, effectively squeezing out the private sector. The system has failed to address black market demand, with Icelanders spending about ISK20 billion ($146 million) annually on unregulated foreign gambling websites.
“It is the nature of monopolies to limit consumer choice,” Haijer said. “Online gambling is a price-driven market. People play for their own money and naturally want to maximize their potential returns. Attempts to limit consumer choice through monopolies therefore create more problems than they solve.”
Haijer pointed to the successful regulatory frameworks established in Denmark and Sweden, which launched regulated gaming markets in 2012 and 2019, respectively. “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 stated.
“The companies that used to have patents in these countries have also prospered… Iceland can achieve comparable results to Sweden and Denmark, but it requires political will and courage to change direction.”
He emphasized that transitioning to a licensing regime would improve customer safety without encouraging more people to gamble. “On the contrary, such a change is about creating a regulated environment that is safer for players than the current environment in Iceland,” Haijer said.
He acknowledged the challenges involved in implementing a new licensing system but expressed confidence that these could be overcome with careful planning, as demonstrated by other European countries. “These challenges are inevitable, but almost all European countries have managed to solve them successfully,” he added.
Original article: https://www.yogonet.com/international/noticias/2024/07/29/73603-egba-chief-urges-iceland-to-reconsider-monopolybased-gambling-market
