Supreme Court in Finland Backs Bettor’s Right to Deduct Losing Stakes From Taxes

A professional bettor in Finland has won the right to write off losing stakes against his taxes. The Supreme Administrative Court ruled on 1 October that he can deduct the stakes on bets that lost, not only the ones that paid out. 

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Back in 2020, Antti Koivula placed 2,145 bets with operators outside the EEA. He staked €365,606 and got €406,713 back, a profit of about €41,100 on an eleven per cent return.

The Tax Administration had allowed him to deduct only the stakes on bets that won. On that basis, it added more than € 112,000 to his earned income for 2020 and imposed a tax increase of €1,154.60. 

The Court annulled the adjustment according to iGaming Finland. He may deduct all €365,606, the tax increase is removed, and the Tax Administration was ordered to pay his legal costs in full.

“The tax bear is down!” Koivula stated on LinkedIn. “The case concerned my personal income taxation and determined the tax treatment of professional bettors in Finland, both now and going forward. This one matters. More soon.”

Ruling may play big part in Finland’s summer 2027 market launch

Finland’s betting market is set to open next July, and the ruling could shape how things look once it does. Last month, the National Police Board had received 75 applications, up from the 50 recorded in June. In August, that figure was still being described as “around 50.” The jump suggests interest is building as the launch date nears.

Koivula told Nettipokeri that the ruling could prove helpful for professional betting in Finland once the market launches in July 2027.

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He also shared more detail about the case. According to Koivula, the ruling did not set out defined working hours, stake sizes or exact income limits for an activity to count as income-generating for tax purposes. “The ruling states that I clearly fell within the scope of the criteria. It does not specify exactly where the line should be drawn,” he told Nettipokeri.

Koivula went on to add that the decision could give grounds for appealing past taxation. That would apply where a bettor in a similar income-generating position had not been allowed to deduct their stakes.

Under Tax Administration guidelines, a person can usually ask for an adjustment to income taxation within three years from the start of the year after the tax year ends. For 2023, for example, the normal adjustment window closes on 31 December 2026.

Supreme Court goes two up against gambling taxes in Finland

This is the second major ruling from Finland’s Supreme Administrative Court on gambling taxes in recent months. Back in August, the court struck down the country’s spin-by-spin tax on online slot games hosted outside the European Economic Area

That policy had targeted offshore operators, including those based in places like Curaçao, who take bets from Finnish players without a local licence. The decision forced the Tax Administration to stop treating every individual spin as a taxable event.

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Image credit: Sino Yu, CC0, via Wikimedia Commons