Finland iGaming regulation: Supreme Court Strikes Down Spin-Based Tax Ahead of 2027

Finland iGaming regulation: Supreme Court Rejects Game-by-Game Approach

The Supreme Administrative Court has rejected the tax administration’s strict game-by-game approach to online slot gambling outside the European Economic Area. The 3–2 ruling requires taxable income to be calculated per session of play rather than per individual game, allowing stakes on losing games to be deducted for the first time.

Winnings from games run within the EU/EEA are exempt from tax for Finnish players, as per Vero, the Finnish Tax Administration, while winnings from operators based outside the EEA, such as those licensed in Curaçao, have been treated as taxable earned income. Under the Tax Administration’s earlier position, each individual game was treated as a separate taxable event.

Finnish Taxpayers’ Association iGaming Response on Session of Play Boundaries

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.

It is not yet properly known where the exact boundaries of a session of play lie. What is clear, however, is that the assessment extends beyond a single game.

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. For example, if you play on a Saturday while going to eat and use the bathroom in between, I would not consider this to constitute multiple gaming sessions. If the taxpayer repeats the same activity on Saturday the following week, it would be two gaming sessions.

Antti Koivula gambling tax Analysis on Finland offshore operator tax

Antti Koivula, Chief Compliance Officer at Hippos ATG, described the ruling as having partly reined in the Tax Administration’s absurd spin-by-spin approach to taxing online slot games operated outside the EEA.

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.

It is worth noting that a separate but related ruling on professional sports betting is expected any day now.

Veikkaus monopoly transition and the Finnish gambling market 2027

According to the Finnish Government, most provisions of the new Gambling Act take effect on July 1, 2027, ending Veikkaus Oy’s decades-long monopoly on online betting sites and certain online gambling products and opening the market to competing licensed operators.

The National Police Board’s Gambling Administration confirmed that around 50 operators have filed for licences, more than double the number recorded in late March. Most of these early bids are from foreign companies. Each application carries a €29,000 processing fee.

Koivula has previously been critical of how Finnish policymakers have handled that transition, particularly the planned ban on gambling affiliates operating in the country from July 2027 onward… Industry figures including Koivula say there remains, in his words, ‘a lot of room left to be more precise’ once the new regulatory regime takes effect.

Finland iGaming regulation: Mathematical Impact of Spin-By-Spin vs Session Tax

Mathematical Example: Old Spin-by-Spin Calculation

Vanha käytäntö (Ennen) Laskentatapa. Jokainen voittokierros verotetaan erikseen.

Esimerkki (-200 € rupeama): 800 € voittoja verotetaan, tappioita (-1000 €) ei vähennetä.

Verotettava tulo: 800 € (vaikka jäit 200 € tappiolle).

Mathematical Example: New Session of Play Calculation

Uusi KHO:n linjaus (Nyt) Laskentatapa. Tappiot ja voitot lasketaan yhteen pelirupeamittain.

Esimerkki (-200 € rupeama): Koko rupeama oli tappiolla, joten veroa ei mene lainkaan.

Verotettava tulo: 0 €.

Käytännössä tappiollinen pelirupeama ei enää synnytä veronalaista tuloa, vaikka rupeamaan olisi mahtunut yksittäisiä voittokierroksia.

Finland offshore operator tax: The Multiple Sessions Example

Ongelman havainnollistaa yksinkertainen esimerkki. Jos pelaaja voittaa yhdessä pelirupeamassa 20 000 euroa, siitä voi syntyä veronalaista tuloa.

Suurpelaaja: Pelaaja voittaa yhdestä rupeamasta 20 000 euroa, mutta häviää myöhemmässä rupeamassa 30 000 euroa.

Ratkaisevaa periaatetta ei kuitenkaan ulotettu koko verovuoden tasolle. Käytännössä tämä tarkoittaa, että eri pelirupeamien tulokset eivät kuittaa toisiaan.