A legal dispute in Finland has been upheld in favour of a professional bettor, who sought to include his betting losses in his tax considerations.
In 2020, Antti Koivula had put around €366,000 into bets and won approximately €407,000 back, leaving him with an actual profit of around €41,000.
However, in the eyes of the Finnish tax authorities, bets were first and foremost treated individually, and the general conclusion was that Koivula’s losing bets could not be treated as costs incurred to earn his betting income.
Koivula, who has been betting professionally for more than a decade and is also the Chief Compliance Officer at Hippos ATG operator, told news outlet Nettipokeri that the €41,000 profit could have therefore potentially racked up a tax bill of €166,000.
“I certainly had to look into where I could get a loan. There was financial pressure,” he said.
“I am not a millionaire, nor am I financially independent. I have three small children and support my family.”
Arguing that his betting should be treated as an income-producing activity by deducting costs from the income, Koivula’s case eventually reached Finland’s Supreme Administrative Court, which has now ruled in favour of the professional bettor after more than five years of legal disputes.
For Nettipokeri, Koivula added that the ruling could benefit professional betting in Finland once the market launches in July 2027.
Providing more details around the case, he noted that there were no defined working hours, stake sizes, or exact income limits for his activity to be considered income-generating for tax purposes.
The ruling apparently took into account the longevity of his decade-long betting, its systematic nature, his expert understanding of betting markets, and the fact that the activity is economically significant to his livelihood.
“An income-generating activity does not necessarily have to be one’s main source of income; the overall picture is what counts,” Koivula added.
Joonas Karhu, Lawyer at Huhtikuu, highlighted: “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.”
The ruling may have some significance for Finland’s forthcoming betting market, scheduled to launch in July 2027. The case could set a legal precedent for future disputes over tax settlements from betting.
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