Finland’s Supreme Administrative Court has ruled that a professional bettor can deduct losing wagers from taxable betting income, ending a dispute that lasted more than five years and establishing a precedent that could influence the country’s gambling market ahead of major regulatory changes in 2027.
The case involved Antti Koivula, a professional bettor and Chief Compliance Officer at Hippos ATG, whose 2020 betting activity became the subject of a tax dispute. During that year, Koivula placed 2,145 bets with operators located outside the European Economic Area (EEA), staking €365,606 and receiving €406,713 in returns. His actual profit amounted to roughly €41,100.
Finnish tax authorities, however, assessed the bets individually and only allowed deductions for stakes attached to winning wagers. As a result, they added more than €112,000 to his taxable income and imposed an additional tax increase of €1,154.60.
Koivula argued that his betting activity should be treated as income-generating work, allowing the costs associated with earning that income to be deducted. The matter eventually reached Finland’s highest administrative court, which ruled in his favor on October 1 in precedent KHO:2026:79.
“I certainly had to look into where I could get a loan. There was financial pressure,” he said according to SBC News. “I am not a millionaire, nor am I financially independent. I have three small children and support my family.”
Court Recognizes Betting as Income-Generating Activity
In its decision, the Supreme Administrative Court concluded that Koivula’s betting activity qualified as income-generating activity under Finland’s Income Tax Act. The court determined that his results depended partly on chance and partly on extensive research, information gathering, and knowledge of betting markets.
The judges emphasized the scale and systematic nature of the activity. Koivula had reportedly supported himself and his family through betting since 2010, focusing primarily on Finnish football and searching for pricing discrepancies offered by bookmakers. Court documents noted that he spent between 30 and 100 hours per week on the activity depending on the season.
The ruling overturned decisions by both the Tax Administration and lower judicial bodies, allowing deduction of the full €365,606 in betting stakes. The court also removed the tax increase and ordered the Tax Administration to cover Koivula’s legal costs.
At the same time, the court drew a distinction between income-generating activity and business activity. While it recognized the betting as a structured effort to earn income, it did not classify it as a business under Finland’s Business Income Tax Act.
Joonas Karhu, Lawyer at Huhtikuu, explained the practical outcome of the judgment:
“What this means in practice is that stakes from unsuccessful bets can be deducted from taxable betting winnings. Also travel expenses between home and the workplace were deductible. The Court did not, however, consider the betting activity to constitute business activity under the Business Income Tax Act.”
Koivula also noted that the judgment did not establish specific thresholds for qualifying as a professional bettor. “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 said. “An income-generating activity does not necessarily have to be one’s main source of income; the overall picture is what counts.”
Implications Ahead of Finland’s Market Reform
The dispute centered on betting with non-EEA operators because Finnish tax law exempts gambling winnings from Finland and other qualifying EEA jurisdictions while taxing winnings from outside that area.
Industry observers view the ruling as significant because Finland is preparing to open a licensed gambling market on July 1, 2027. Under the new framework, the distinction between taxable and tax-exempt gambling winnings will be tied to licensing rules rather than geography.
The court’s decision therefore answers an important question about how taxable betting activity may be treated once the new system takes effect.
According to legal analysis, the previous interpretation created a situation where professional bettors could face taxation based on amounts far exceeding their actual profits. In Koivula’s case, authorities assessed taxable income more than twice his net gain. The new ruling shifts taxation closer to real profit by allowing losing stakes to be deducted when betting qualifies as extensive and systematic income-generating activity.
Tax lawyer Miika Härkönen noted that Finnish tax treatment has long allowed poker players engaged in income-generating activity to deduct losses. The latest judgment brings professional betting into closer alignment with that approach.
Koivula believes the decision may help professional bettors continue operating once the reformed market launches in 2027.
Questions Remain Over Future Tax Guidance
Although the judgment establishes a principle, it leaves several issues unresolved. The court did not define minimum betting volumes, income levels, working hours, or other criteria required to qualify as a professional bettor.
The ruling highlighted several factors supporting Koivula’s case, including more than a decade of betting activity, its organized and consistent nature, his expertise in betting markets, and the role the activity played in supporting his livelihood.
Following the decision, the Tax Administration may need to revise existing guidance that treated losing stakes on non-EEA bets as non-deductible expenses. Observers also note that bettors previously assessed under the former interpretation may seek rectification within applicable deadlines.
Koivula celebrated the outcome publicly after the ruling was released. “The tax bear is down!”, Koivula shared 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.”