Application for lottery license

A licence from a District commissioner is required to operate a lottery, except when the law stipulates otherwise.

Lotteries in which money or quasi-money is played may only be operated in accordance with special provisions in law. These sources apply, for example, to:

• University of Iceland lottery

• DAS lottery

• Collection box

The District Commissioner for the Southern Region shall license lotteries nationwide if the sales value of tickets issued exceeds ISK 2,000,000.

District commissioner in each of their areas shall license local lotteries where the sales value of tickets issued does not exceed 2,000,000 kronur.

The most common types of lotteries are:

• Ticket lottery

• Scratch ticket lottery

• Bingo

• Tombola

Conditions

A licence to operate a lottery may only be granted to an organisation, association or institution registered in the European Economic Area. The purpose must be to raise funds for the public good, such as for social, charitable, cultural, sporting or charitable purposes, as well as for international humanitarian work.

The same party may only be granted three times the licence to operate a lottery over a 12-month period.

The lottery may have a maximum sale period of three months. The drawing of the prize shall be carried out at a predetermined time, in the presence of a representative of the District Commissioner, if applicable.

Extractions may be postponed for up to two months from the date of the pre-determined extraction with the special permission of the District Commissioner.

Extract in the presence of a representative of the District Commissioner

In the case of ticket lottery, where the winner is to be drawn, an appointment must be made by the District Commissioner for the drawing, which will then take place in the presence of a representative of the District Commissioner.

Application and accompanying documents

An application for a licence to operate a lottery must be completed and sent to the relevant District Commissioner who reviews the application and issues a licence if all the conditions are met. The application must include:

• Number of tickets

• Central price

• Number of wins

• Total winnings

• Extraction date

The application must be accompanied by a list of the winnings and the value of each of them.

The minimum share of the value of winnings in the wholesale price of tickets issued shall be 16.67%.

Cost

No fee is paid for these licences.

Settlement after lottery

The licensee of a lottery must send the district commissioner a settlement or statement of accounts no later than 6 months after the lottery was completed. The accounts must include:

• What was the income (for example from selling tickets)

• What was the cost (for example, if something was paid for the winnings)

• What was the profit

Exemptions

It is not necessary to license a lottery organised by a company or group at homecoming events or similar gatherings that are not open to the public. The purpose of the gathering, however, may not be solely to raise funds for a particular issue.

• The winnings may only be goods or services, but not money.

• The maximum amount of the aggregate prize winnings may not exceed ISK 1,000,000 if the number at the gathering is less than 500 persons, or ISK 2,000,000.

• The winnings must be withdrawn at the event.

The following lotteries need not be licensed if the cost of participation does not exceed three times the actual cost:

• Bonus lottery: When a lottery is offered for the purchase of goods or services free of charge.

• Advertising lottery: A lottery connected to the promotion of a product or brand without charge.

• Recognition lottery: A participant answers questions by calling in a radio show, for example.

• Guess lottery: A participant pays a price for participation and returns a guess for the outcome of a competition (excluding a sports competition) or any event or event.

Complaint period

Appeals against decisions by the District Commissioner may be lodged with the Ministry of Justice within three months of reception.