I'm not sure this is my kind of place, but...
Apparently a new club named
Jón Forseti has opened this month with a cabaret show on Saturday nights:
The gay theater 'Hégómi og eftirsókn eftir vindi í seglin' are going to be on Jón Forseti Saturday May 29th. The show, Drag Cabaret is going to be BIGGER and more GLAMOURUS. The show starts at 23:00. Lots of fun and an excellent way to start the night. House opens 20:00. Price is 500 kronur.
Source:
www.gayice.is
500 Kronur ~= US $7