Finland’s Supreme Administrative Court has ruled that sports betting can qualify as income-earning activity for tax purposes when it is conducted extensively and systematically. The decision could affect how qualifying bettors report their winnings and deduct related expenses.
Tax Treatment of Betting Activity
Under the ruling, qualifying bettors may deduct losses from taxable betting winnings. Certain travel expenses between home and work may also be deductible. Lawyer Joonas Karhu highlighted the decision, noting that the court considered whether the betting activity was undertaken with the aim of generating income.
However, the court did not classify sports betting as a business activity under Finland’s Business Income Tax Act. The distinction means the ruling recognises a potential income-earning purpose without automatically placing sports betting within the country’s business taxation framework.
Professional poker playing had previously been recognised as income-earning activity under Finland’s tax rules.
Further Gambling Tax Decisions
The ruling is the second gambling-related tax decision issued by the Supreme Administrative Court within three months. In August, the court rejected the Finnish Tax Administration’s approach of treating every spin on online slot games operated outside the European Economic Area as a separate event. That decision was reached by a 3–2 majority.
The latest judgment comes as Finland prepares to move to a licence-based iGaming market on 1 July 2027. It provides further clarification on gambling taxation ahead of the regulatory transition, although the treatment of individual cases will depend on the applicable tax rules and the circumstances of the activity.
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