It was the largest concert venue in Iceland for many decades (before the opening of Egilshöll), with a maximum standing capacity of 10,000 (or 5,000 seated) in Frjálsíþróttahöllin, the adjoined athletics center.

[3] The first extension was built on the east side of the building to increase the number of spectator seats to around 5,500 for the 1995 World Men's Handball Championship.

At the same time, maintenance and renovations also took place in the main arena's building which reopened in early September 2005 after being closed during the summer months.

New parquet flooring was installed, following significant damage caused by a hot water leak in November 2020, polished and later revarnished alongside new seating in the spectator stands, lighting and a sound system that meets modern requirements for sports competitions.

[6][7] In 2017, the ÍBR Congress agreed to launch a feasibility study on the construction of a new multi-purpose sports hall,[8] but this was rejected for cost reasons.

[10] In January 2020 Lilja Dögg Alfreðsdóttir, Minister of Education, Science and Culture, appointed a working group to make proposals for a new "national stadium for indoor sports".

[11] In April 2022, a committee concluded that a new venue should have either a seated capacity of 5,000 or 8,600 (expandable up to 12,000 for concerts), which would satisfy the requirements needed for handball and basketball.

[12] In May, the city and the government agreed to making a new arena for the national teams that would be shared with sports clubs Þróttur and Ármann as-well as the schools in the neighbourhood.

[17] On 8 March 2024, the government and Reykjavik announced a competition for the construction and design of the new venue, with the winner being chosen in June and advertised it in the European Economic Area.

[23] Perhaps the most prominent event to be held at Laugardalshöll was the World Chess Championship 1972, often dubbed the "Match of the Century", in which challenger Bobby Fischer of the United States defeated the defending champion Boris Spassky of the Soviet Union.