Finnish Supreme Court Rules in Favor of Professional Bettor in Landmark Tax Case

A major decision from the North is rippling through the European gaming world. Following a legal battle lasting more than five years, Finland’s Supreme Administrative Court has delivered a verdict that could secure the financial livelihood of many professional bettors. At the heart of the case is Antti Koivula, a well-known professional bettor and compliance expert, who fought against a draconian tax assessment. The ruling emphasizes that when gambling is conducted professionally, it must be treated as a serious economic activity rather than mere recreation.

The case has enormous implications as it fundamentally challenges the logic previously applied by Finnish tax authorities. Historically, authorities attempted to view each wager in isolation, refusing to recognize associated losses as deductible expenses. The court has now acknowledged that for systematic and long-term activities, the costs of generating income—including stakes from losing bets—must be deducted from taxable profit. This prevents taxation that, in some instances, would multiply the actual net profit.

Numbers and facts

The specifics of the case from 2020 are striking. During that year, Antti Koivula placed bets totaling approximately €366,000. These wagers generated returns of around €407,000, leaving him with an actual pre-tax profit of roughly €41,000. However, the Finnish tax authorities initially interpreted the law such that losses could not be offset. This would have resulted in a tax bill of approximately €166,000, despite Koivula earning only a fraction of that amount. He stated during the proceedings that he even had to consider where he could obtain a loan to cover the potential liability.

The court based its ruling on Koivula’s professional status. He has been active in sports betting for over a decade. Criteria such as longevity, systematic approach, market expertise, and the economic significance of the activity for his livelihood were all taken into account. Interestingly, the court did not set hard thresholds, such as a minimum number of working hours or a specific volume, but instead required an individual assessment of each case.

Background

Koivula’s victory comes at a pivotal moment. Finland is currently preparing to move away from its traditional state monopoly. In July 2027, a competitive, licensed gambling market is set to launch. This ruling serves as a vital reference point for future taxation within the new system. It clarifies that professionals must not be driven to ruin by flawed tax logic. Antti Koivula himself is not just a plaintiff but is deeply rooted in the industry as Chief Compliance Officer at Hippos ATG and a regular columnist.

"The decision is important not only for my personal taxation but also for determining the tax treatment of professional bettors in Finland going forward." - Antti Koivula, Professional Bettor and Chief Compliance Officer at Hippos ATG

While the court decided that the activity does not fall under the Finnish Business Income Tax Act as a classic business, it classified it as an income-generating activity. This allowed for the deduction of not only betting stakes but also travel expenses between the residence and the place of activity.

Why it matters for German players

For German players, the situation is fundamentally different, yet the Finnish case offers interesting points of comparison. In Germany, the Interstate Treaty on Gambling (GlüStV 2021) sets strict rules for players and operators. Profits from gambling are generally tax-free for recreational players in Germany. Issues only arise if the tax office assumes a commercial activity, which occasionally happens with poker players or sports betting professionals. German players must strictly stick to providers on the GGL whitelist to remain legally protected. Here, protective mechanisms like the €1,000 monthly deposit limit and the €1 per spin limit for slots apply. While the Finnish ruling recognizes professionalization, German law primarily targets player protection and addiction prevention. There is no direct transferability of loss deduction for German recreational players, as they do not have to tax their winnings in the first place.

What it means for GGL-licensed casinos

Licensed providers in Germany operate under the supervision of the Gemeinsame Glücksspielbehörde der Länder (GGL). This authority ensures fair conditions and compliance with the LUGAS system for monitoring limits. German casinos with a GGL license offer the necessary legal certainty that is absent in providers from Malta or Curacao. The Finnish ruling underscores the importance of clear regulatory frameworks. For GGL-licensed casinos, a clear tax line for professionals means a more stable customer base in the long term, as legal certainty prevents migration to the black market. The strict German rules serve to prevent excessive gambling, while the Finnish example shows how the state should handle the few genuine experts in the scene.