Finland’s Supreme Administrative Court has overturned the individual spin-by-spin tax for online slot games operated outside of the European Economic Area (EEA).

The court voted 3-2 in favour of the Tax Administration changing its previous approach to individual spins for online games that are based in jurisdictions like Curaçao, according to news outlet Taloustaito.

Commenting on the court’s decision, Miika Härkönen, tax lawyer at the Finnish Taxpayers’ Association, said: “The most important thing about the ruling is that the Supreme Administrative Court did not accept the Tax Administration’s view that each game should be examined as a completely separate event.”

Elsewhere, the court’s decision that game sessions should be treated separately for tax purposes was also welcomed by industry stakeholders on social media.

Antti Koivula, Chief Compliance Officer at Hippos ATG and a prominent Nordics gambling law expert, called the previous Tax Administration approach “absurd”.

He said: “In an unpublished ruling, Finland’s Supreme Administrative Court has partly reined in the Tax Administration’s absurd spin-by-spin approach to taxing online slot games operated outside the EEA.

“The Court held that taxable income must instead be determined for each session of play. 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.”

Taloustaito further noted that the Tax Administration now needs to update its policies to reflect the court’s decision.

More precision desired

Koivula has been previously critical of how the Finnish government has handled the road towards gambling market liberalisation, which is expected to be completed by next year’s summer.

One particular point of content has become the treatment of affiliates, which under the future legislative framework will be banned from operating in Finland from July 2027 onwards.

The decision to completely ban affiliates from the market stems from a deep misunderstanding from policymakers of what they actually are, Koivula previously told SBC News.

One thing is for certain – the clock is ticking towards the launch of Finland’s long-awaited licensed market, but experts seem to agree that there is still “a lot of room left to be more precise” when it comes to the new regulatory framework.