As commercially regulated operators prepare to enter the Finnish iGaming market in July 2027, two recent decisions from the country’s Supreme Administrative Court have affected gambling taxation — crucial for operators and players to understand.
Two important rulings from the Supreme Administrative Court of Finland in recent months have significantly reshaped how gambling winnings will be taxed in the country, as they fall outside the tax exemption regime.
In August 2026, a divided court ruled that chance-based winnings from an online casino will be assessed per playing session rather than per individual game or over the tax year.
On October 1, 2026, the court mentioned in a published precedent that the activities of a professional sports bettor are considered income-earning activities, with all stakes deductible.
Both of these rulings are applicable to winnings from operators outside the European Economic Area (EEA) under the current monopoly regime. However, their relevance does not end with the monopoly. Also, these rules are general provisions of the Income Tax Act and remain unchanged under the gambling reform.
From 1 July 2027, the rules will also apply to winnings generated from operators that target Finnish players without a Finnish licence.
For commercially regulated operators preparing to enter the Finnish iGaming market, understanding the effect of these rulings is important — not just for the players alone.
How Do New Rulings Affect Operators?
With new rulings in place, licensed operators will have to pay a lottery tax of 22% on Gross Gaming Revenue (GGR) from July 1, 2027. This means lower winnings will be paid out to players. This applies to the player rather than the operator: it covers games offered under a Finnish licence to players resident in Finland, regardless of where the operator is established.
By design, the lottery tax replaces the winner’s income tax, and the rationale for this is set out in the Government Proposal for the reform (HE 16/2025 vp). The operator pays tax on its margins, and the player keeps the winnings tax-free.
In addition to the lottery tax, licence holders will also have to pay an annual supervision fee up to €434,000, as defined in GGR bands.
Thus, operators should not consider the 22% lottery tax as fixed.
How Do New Rulings Affect Players?
According to Section 85 of the Income Tax Act, winnings from Veikkaus and from games lawfully organised in another EEA state are tax-exempt. In real practice, a Finnish player’s winnings from a Malta-licensed online casino are tax-free today. However, winnings from operators outside the EEA are taxable earned income.
From 1 July 2027, amended Section 85 of the Income Tax Act links the exemption to the Finnish licensing system. Winnings from games offered under a Finnish licence are tax-exempt, even if the licence holder is based outside the EEA. Winnings from games lawfully offered in another EEA state also remain exempt, but the Government Proposal makes clear that this does not cover games offered to Finnish players without a Finnish licence.
What Does This Mean for Finland’s iGaming Market?
During the legislative process, the Finance Committee noted that losses will not be deductible for gambling outside the licensed system. Both rulings will apply to unlicensed operators targeting Finland after July 2027.
For the Finnish iGaming market, the rulings strengthen the case for the licensed system. From July 2027, a Finnish player at an unlicensed site may face income tax on winning sessions even in a losing year, while winnings from a licensed operator will be tax-free.
In this context, the 22% lottery tax is also the price of offering a tax treatment that an unlicensed competitor targeting Finland cannot match.
The effect is smaller for professional bettors. If their activity counts as income, using an unlicensed site means tax is paid on the net result rather than on each winning session. Licensed play still has the advantage because winnings are tax-free, but the difference is smaller. For this group, odds, limits, and bet options are likely to matter more than tax.
For operators who want to keep serving Finnish customers without a license after 1 July 2027, the rules change on that date. Their Finnish players’ winnings will count as taxable income, and the EEA exemption will no longer apply to them.
Hence, the best next move for such operators is to get an online gaming license before entering the Finnish market.
Leave a Reply