Most forms of gambling are prohibited in the Faroe Islands, including land-based casinos and betting shops.
The legal gambling age in the Faroe Islands is 18 years old.
There is no local licensing authority for gambling; no commercial licenses are issued for private operators.
The Danish Gambling Authority does not supervise anti-money laundering compliance in the Faroe Islands.
Online gambling is not formally regulated, and local laws restrict access to most online gambling services.
Lotteries and small-scale charity games may be permitted under strict local regulations.
Taxation of gambling winnings is not specifically regulated due to the general prohibition of most gambling activities.
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Legislation
Primary Legislation
Gambling in the Faroe Islands is governed by a restrictive legal framework that generally prohibits most forms of gambling. There is no specific, comprehensive gambling act dedicated solely to the Faroe Islands. Instead, gambling activities are regulated under local Faroese legislation, which is distinct from the broader Danish gambling laws. The existing legal framework in the Faroe Islands prohibits the operation of traditional casinos and most commercial gambling activities. Only certain charitable or state-run lotteries and betting activities may be permitted under strict conditions. There is no provision for the licensing or regulation of online gambling operators within the Faroe Islands.
Regulatory Authority
The Faroe Islands maintain their own regulatory oversight for gambling activities, separate from the Danish Gambling Authority. There is no dedicated national gambling authority or commission in the Faroe Islands. Instead, regulatory oversight is exercised by local government bodies, which are responsible for ensuring compliance with Faroese gambling laws and prohibitions.
Oversight of permitted charitable or state-run gambling activities
Enforcement of prohibitions on unauthorized gambling operations
Interpretation and application of local gambling legislation
License Types
Types of Gambling Licenses Available in Faroe Islands
The Faroe Islands do not operate a comprehensive licensing system for commercial gambling activities. Most forms of gambling, including land-based casinos and online gambling, are prohibited or heavily restricted. There are no specific gambling licenses available for commercial operators, either domestic or international. Any permitted forms of gambling are generally limited to charitable lotteries or small-scale, non-commercial activities, which may require special permissions from local authorities rather than a formal licensing regime.
Application Process
There is no standardized application process for commercial gambling licenses, as such licenses are not issued in the Faroe Islands.
For small-scale charitable lotteries or similar activities, organizers may need to seek approval from local municipal authorities, typically on a case-by-case basis.
Duration and Renewal Conditions
Since there is no formal licensing system for commercial gambling, there are no official license durations or renewal procedures.
Permissions for charitable or community-based activities are usually granted for a specific event or limited time period, as determined by the local authority.
Eligibility Criteria
No eligibility criteria exist for commercial gambling licenses, as such licenses are not available.
For charitable activities, eligibility may depend on the nature of the organization and the intended use of proceeds, subject to municipal approval.
Licensing Costs and Financial Requirements
There are no government fees or financial requirements for commercial gambling licenses, as such licenses are not issued.
For charitable events, any applicable administrative fees are determined by local authorities and are typically minimal.
Key Requirements for Obtaining and Maintaining Licenses
There are no key requirements for obtaining or maintaining commercial gambling licenses, as the Faroe Islands do not issue them.
For charitable or non-commercial gambling activities, organizers must comply with any conditions set by municipal authorities, such as transparency in the use of proceeds and responsible conduct of the event.
Gambling Tax
Tax Rates for Gambling Operators in Faroe Islands
Currently, there is no specific or comprehensive taxation system for gambling operators in the Faroe Islands. The territory is considered unregulated with regard to online and many forms of land-based gambling. As a result, there are no officially published tax rates for different types of gambling operations, such as casinos, sports betting, or lotteries.
Basis for Taxation
There is no established basis for gambling taxation in the Faroe Islands, such as Gross Gaming Revenue (GGR) or turnover, due to the absence of a formal regulatory and tax framework for gambling operators.
Tax Reporting and Payment Requirements
Since there are no specific gambling taxes or a regulatory regime, gambling operators are not subject to dedicated gambling tax reporting or payment procedures in the Faroe Islands.
General business taxes may apply to any company operating in the territory, but these are not tailored to gambling activities and do not include special provisions for gambling revenue.
Tax Incentives, Exemptions, and Special Provisions
There are no tax incentives, exemptions, or special provisions specifically for gambling operators in the Faroe Islands, as the sector is not formally regulated or taxed.
Summary Table: Gambling Taxation in Faroe Islands
Gambling Activity
Tax Rate
Basis
Reporting/Payment
Incentives/Exemptions
All gambling operations
Not specified
Not specified
Not applicable
None
Prohibited Individuals
Age Restrictions
The minimum age required to participate in gambling activities in the Faroe Islands is 18 years old. All players must provide valid identification to verify their age before being allowed to engage in any form of gambling.
Prohibited Activities
Online gambling is not formally regulated in the Faroe Islands, which means that local operators are not permitted to offer online gambling services. Access to unlicensed or offshore online gambling platforms may be restricted or discouraged.
Certain forms of gambling, such as unlicensed betting, casino games, or lotteries, are prohibited unless specifically authorized by the relevant authorities.
Unauthorized gambling activities, including informal or private gaming operations, are not permitted.
Advertising and Marketing Limitations
Advertising of gambling services is subject to strict limitations. Only licensed or authorized operators may promote their services, and all advertising must comply with responsible gambling standards.
Marketing campaigns targeting minors or vulnerable groups are expressly forbidden.
Advertisements must not mislead consumers about the chances of winning or the nature of the games offered.
All promotional materials must include clear information about responsible gambling and provide resources for help with problem gambling.
Responsible Gambling Requirements and Player Protection Measures
Operators must implement robust age and identity verification processes to prevent underage gambling.
Information about responsible gambling, including self-exclusion options and support services for problem gamblers, must be readily available to all players.
Operators are required to monitor player behavior for signs of problem gambling and intervene when necessary, including offering self-exclusion and deposit limit tools.
All gambling activities must be conducted transparently and fairly, with clear rules and payout structures.
Geographic or Location Restrictions
Land-based gambling venues, if permitted, are subject to geographic restrictions and may only operate in designated areas as authorized by the local authorities.
Gambling activities are not allowed in unauthorized locations, including private or public spaces not specifically licensed for gambling.
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Timeline
Unfortunately, there is limited specific historical information available about the development of gambling regulations in the Faroe Islands. However, it is known that most forms of gambling are prohibited in the Faroe Islands due to local laws. Here is a simplified timeline based on general knowledge:
Year/Date
Event
Mid-20th Century
Continued prohibition of most gambling activities, aligning with broader Nordic attitudes towards gambling.
Late 20th Century
No significant changes in gambling laws; prohibition remains in place.
Early 21st Century
Internet and online gambling further restricted, though specifics on exact dates are unclear.
Present Day
No traditional brick-and-mortar casinos exist due to ongoing prohibition of most gambling forms.
This timeline highlights the general trend of prohibition in the Faroe Islands but lacks specific dates for legislative changes due to the lack of detailed historical records available.
Requirements
Software Certification and Technical Standards
There are currently no specific, published software certification or technical standards requirements for gambling operators in the Faroe Islands, as most forms of gambling are prohibited under local law.
No formal framework exists for the independent testing or certification of gambling software, random number generators, or game fairness in the jurisdiction.
Data Protection, Privacy Measures, and Server Location
No dedicated data protection or privacy measures specific to gambling operators are established by local regulation in the Faroe Islands.
There are no explicit requirements regarding the physical location of servers or data centers for gambling operations, as regulated online gambling is not permitted.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
There are no operational AML or KYC procedures mandated for gambling operators, as the Faroe Islands do not have a regulated framework for online or land-based gambling businesses.
The Danish Gambling Authority’s AML supervision does not extend to the Faroe Islands, and no local authority provides AML or KYC guidance for gambling operators.
Financial Reporting, Auditing Standards, and Record-Keeping Requirements
No specific financial reporting, auditing standards, or record-keeping requirements are prescribed for gambling operators in the Faroe Islands due to the absence of a regulated gambling sector.
Technical Implementation Requirements for Responsible Gambling Tools
There are no technical requirements or standards for the implementation of responsible gambling tools, such as self-exclusion systems, deposit limits, or reality checks, as regulated gambling operations are not permitted.
Sources
Primary Regulatory Authorities
There is currently no dedicated gambling regulatory authority in the Faroe Islands. Gambling matters are overseen by the Faroese government. For official inquiries, contact the Government of the Faroe Islands:
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
