Lotteries can only be operated by permission of a District Commissioner, and for the purpose of raising funds for public benefit in Iceland. Special rules apply to lotteries with cash prizes, which cannot be operated without a special statutory authorisation. This applies as well to internet lotteries if they offer cash rewards and to gambling. Some minor lotteries are, however, exempt from the licensing requirements, such as draws at annual parties or other such get-togethers that are not open to the public. The assumption is that the prizes are drawn for at the gathering itself, are of a low value and not in cash.
The District Commissioner in South Iceland is responsible for granting licenses for instant lotteries.
Special laws apply to public fundraising undertaken by institutions, organisations or associations for lawful purposes. Public fundraising refers to activities where the public is encouraged to donate money to benefit a particular cause without compensation.
Fundraising in public spaces or door-to-door is subject to the permission of the District Commissioner in South Iceland.
Other public fundraising should be notified to the District Commissioner in South Iceland before it commences, such as fundraising on the radio, on television or through the Internet.