Iceland's national broadcaster has announced it will boycott next year's Eurovision Song Contest due to discord over Israel's participation.

The boycott raises the prospect of less sponsorship income and viewers for the extravaganza that draws millions of viewers worldwide.

Bookmaker Betfair's first Eurovision 2026 odds place Israel at the top, with Sweden, Finland, Ukraine, and Italy following closely behind.

Ireland, the Netherlands, Spain and Slovenia said they were pulling out of the contest after organizers decided to allow Israel to continue to compete, despite tensions over its conduct in Gaza.

Russia was barred from participating in Eurovision in February 2022 — one day after its full-scale invasion of Ukraine. At the time, the EBU cited the "unprecedented crisis" in Ukraine, and said including a Russian entry in that year's contest would "bring the competition into disrepute".