G3-247 Report ICELAND
ductive country in the world and the fifth most productive by GDP. Although historically the country depended on fishing, which is still 40 per cent of export earnings, the economy is however vulnerable to declining fish stocks. The economy is now diversifying into manufacturing and serv- ice industries.
Today it is one of the most developed countries in the world and Icelanders have the second highest quality of life in the world. Despite Iceland’s deci- sion to resume commercial whale hunting in 2006 tourism is also expanding especially in eco tourism and whale watching. The country sees around 1.1 million visitors a year.
Last year some 781,000 foreign tourists visited Iceland which is an increase of 20 per cent whilst in Reykjavik 1,100 additional hotel rooms are cur- rently being built. This includes the first five star hotel in the city with 250 rooms.
ICELANDIC LOTTERIES AND VLTS There are six companies operating in the Icelandic
lottery market which between them operate lot- teries, class lotteries, scratch cards and VLTs.
All profits go towards good causes and the Althing (Parliament) has issued the laws governing these lotteries and permission to operate is granted by the Ministry of Interior.
Gambling is illegal in Iceland with a few excep- tions according to Articles 183 and 185 of the Criminal Code which has been in effect since 1998.
Article 183 states ‘A person who makes a profes- sion of gambling or betting or of inducing others to participate therein shall be subject to a fine or imprisonment for up to one year in case of a major offence.’
rowed whilst the crisis also led to the greatest migration from Iceland since 1887 with around 5,000 people leaving.
The Icelandic government raised interest rates to 18 per cent from seven per cent and its currency rate dropped sharply whilst foreign transactions were halted, which made it impossible for many foreigners to get their money out of the country. Many Brits and Dutch who had invested in online Icesave accounts have been left waiting to recover funds from the bank’s administration process.
By 2012 under the government of Johanna Sigurdardottir of the Social Democratic Alliance the economy stabilised and grew by 1.6 per cent in 2012. However many Icelanders were unhappy with the state of the economy and austerity poli- cies.
Then in the 2013 elections the centre right Independence Party returned to power in coalition with the Progressive Party.
Today in Iceland there is a wave of confidence fol-
Although the lottery is not defined by Icelandic law it is,
however, legal, given it is in aid of charities and organisations.
lowing Sigmundur David Gunnlaugsson’s election and there are promises of mortgage relief to many homeowners. Disposable income has however fallen by a quarter after the crash and around 30,000 people have fallen into loan debts.
There are no major banks left only small banks whilst lending to consumers and businesses has slowed to a fraction of what is was before.
Unemployment however is down to four per cent with the aim of reducing that to two per cent by the end of the year. The economy is also set to expand by 2.7 per cent this year
Back in 2007 Iceland was the seventh most pro-
Article 184 states ‘Anyone who directly or indi- rectly acquires earnings by letting gambling or betting be performed in accommodation which is under their control shall be subject to fines or imprisonment of up to one year.’
Although the lottery is not defined by Icelandic law it is however legal given it is in aid of charities and organisations. The operation of lotteries is governed by general laws.
This wasn’t always the case. Lotteries were offi- cially banned in 1926 in order to prevent local funds from being invested in foreign lotteries, par- ticularly in Denmark, and stopping privately run operations in the country.
Then in 1933 this was partially repealed when the Icelandic Parliament granted the University of Iceland the monopoly right to run a lottery in the country earmarking 80 per cent of the profits to the university and a 20 per cent licence fee.
The legislation was based on the Danish law and for a while this was the only lottery. Later the Icelandic legislative assembly permitted new forms of lotteries which saw competition in the
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