Finland’s Supreme Administrative Court has rejected the tax administration’s strict game-by-game approach to online slot gambling outside the European Economic Area, giving players greater scope to deduct losing bets when calculating taxable income.
The ruling came by a 3-2 majority and changes how gambling activity must be assessed. Miika Härkönen, tax lawyer at the Finnish Taxpayers’ Association, said: “The most important thing about the decision is that the Supreme Administrative Court did not accept the Tax Administration’s view that each game should be viewed as a completely separate event.”
The decision applies to gambling conducted outside the EEA, including games offered from jurisdictions such as Curaçao. Winnings from gambling within the EEA remain generally tax-free in Finland.
Gaming Sessions Replace Individual Spins
The court’s approach places greater importance on the wider gaming session. Bets from losing games can be deducted in certain circumstances when they belong to the same gaming group, although losses from one session cannot be used to reduce profits from another.
The practical definition of a session remains important. Härkönen said: “I would personally think that gaming where the games have a clear temporal and functional connection and which may also include breaks is considered a gaming session.”
He gave the example of a player who takes breaks to eat or use the bathroom during Saturday play, saying those activities would generally remain part of one session. Repeating the same activity the following Saturday would constitute a separate session.
Antti Koivula, Chief Compliance Officer at Hippos ATG, described the ruling as a partial restriction of the previous method. He said: “The Court held that taxable income must instead be determined for each session of play (pelirupeama). However, losses from one session cannot be offset against profits from another, meaning that a slot player may still lose money overall while owing considerable tax.”
The ruling also strengthens the principle that Finnish income tax should generally apply to net income after deductible expenses connected with generating that income.
Tax Reviews And Wider Gambling Reforms
The decision could affect earlier tax assessments made under the previous interpretation. Players who had their winnings calculated separately for each game may be able to seek a reassessment. Claims for adjustment can reach three years into the past, meaning a 2023 assessment could still potentially be challenged in 2026.
The Tax Administration must update its guidance following the ruling. The case itself arose after a young gambler faced a substantial tax liability despite suffering overall gambling losses.
Finland’s wider gambling framework remains in development. Commercial gambling licences are expected to take effect on 1 July 2027, while the National Police Board had received 50 applications by June. Each application carries a €29,000 processing fee, and authorities expect processing to take about six months.
Further regulatory changes could also address affiliate marketing, cryptocurrency payments and bonuses. Jari Vähänen of The Finnish Gambling Consultants expects another legislative phase, although he does not expect rapid changes.
A separate Supreme Administrative Court ruling on professional betting is also expected. That case will examine the treatment of losing bets and whether professional betting qualifies as business or income-generating activity for tax purposes.
Source:
“The Supreme Administrative Court outlined the taxation of online gamblers – bets on lost games can also be deducted to a limited extent”, taloustaito.fi, August 14, 2026