Finland’s Supreme Administrative Court has ruled that a professional sports bettor can deduct losing stakes from taxable betting income, establishing an important precedent for players whose gambling activity qualifies as systematic income-generating work.
The ruling, KHO:2026:79, concerns Antti Koivula and his betting activity during the 2020 tax year. Koivula had placed 2,145 bets through operators based outside the European Economic Area, staking a total of €365,606 and receiving €406,713 in returns. His actual profit from those bets was therefore €41,106.
The dispute arose because the Finnish Tax Administration initially assessed individual bets separately. While stakes attached to winning bets could effectively be taken into account, money lost on unsuccessful bets was not treated as a deductible expense.
That approach substantially increased Koivula’s taxable income beyond the amount he had actually earned from betting. According to Nettipokeri, an early stage of the process produced an estimated taxable income of around €350,000, which Koivula calculated could have generated a tax bill of approximately €166,000. He had already paid about €12,000 in tax on his €41,000 betting profit.
Court recognises betting as income-generating activity
The Supreme Administrative Court rejected the previous treatment and concluded that Koivula’s betting qualified as income-generating activity under Finland’s Income Tax Act.
The court considered the scale and organised nature of his work, including extensive research, market analysis and efforts to identify incorrect pricing in odds on Finnish football matches. Koivula had spent roughly 50 to 100 hours per week on betting during busy periods and 30 to 50 hours during quieter periods.
Although the court acknowledged that betting results are partly influenced by chance, it found that Koivula’s success also depended on his knowledge, analysis and understanding of betting markets. The activity was therefore carried out with a sustained intention to generate income.
As a result, he can deduct the full €365,606 staked with non-EEA operators from his taxable earned income. The court also upheld €5,541 in previously accepted travel expenses between his home and workplace.
However, the court did not classify his betting as a business under Finland’s Business Income Tax Act. Other claimed expenses, including office, telephone, internet, subscriptions and football match tickets, were returned to the tax adjustment board for further assessment.
Decision could affect Finland’s new betting market
The judgment does not automatically make gambling losses deductible for every Finnish bettor. Tax authorities must assess whether a player’s activity genuinely constitutes organised income-generating activity rather than recreational gambling.
Koivula’s case involved more than a decade of professional betting, significant working hours, detailed market research and substantial financial activity. The court did not establish a specific minimum level of stakes, working hours or earnings required for other bettors to qualify.
The precedent could nevertheless become increasingly relevant as Finland prepares to open its betting and online casino sector to licensed competition on 1 July 2027. Operators have been able to apply for licences since March 2026, while Veikkaus retains its exclusive position until the end of June 2027.
For professional bettors, the ruling provides significantly greater clarity by confirming that, where betting meets the legal test for income-generating activity, taxable income can reflect the overall economics of the betting operation rather than only its winning wagers.