Finland Taxes Players at Black-Market Sites as Income — Unique in the Nordics

How It Works

Finland's new gambling law makes a fundamental distinction:

Licensed operators: Gambling winnings are tax-free — just like in Sweden today. The player does not need to declare anything. The operator pays 22% GGR tax to the Finnish state.

Unlicensed operators: Gambling winnings are classified as capital income and taxed under Finnish income tax law. What makes the regulation particularly powerful is that taxation is based on gross winnings — not net results.

This creates a situation with no precedent in the Nordics.

The Brutal Mathematics

Consider a Finnish player who spends a year gambling at an unlicensed site:

	Amount
Total wagers	€50,000
Total winnings (payouts)	€42,000
Net result	−€8,000 (loss)
Taxable "winnings"	€42,000
Income tax (~30%)	~€12,600

The player has lost €8,000 — and is additionally taxed on €42,000 in "winnings". The total cost becomes €20,600 instead of €8,000.

The purpose is clear: making it economically irrational to gamble outside the licensed system.

Why Finland Is Doing It

The background is brutal in its simplicity. According to H2 Gambling Capital, €903 million per year is gambled at offshore operators without Finnish oversight — a 74% increase since 2021. This means the Finnish state misses an estimated €199 million per year in potential tax revenue (calculated: €903M × 22% GGR tax).

Offshore operators already control 76.6% of the online casino market and 72% of the betting market. Veikkaus — the monopoly company — has only 39% digital market share remaining.

Player taxation is one of several tools in Finland's arsenal against black-market gambling:

Payment blocking (PSP): Already implemented since 2023. Finnish banks are required to block transactions to unlicensed gambling operators.

IP/DNS blocking: Planned for market opening in 2027. Includes removal of .fi domains belonging to unlicensed operators.

Operator penalties: Up to 4% of previous year's turnover, maximum €5 million. An operator with €100 million in turnover risks €4 million in fines.

Sweden: Tax-Free to Play Black

In Sweden, gambling winnings at unlicensed operators are tax-free for the player. There is currently no economic incentive for a Swedish player to choose a licensed operator over an unlicensed one — at least not from a tax perspective.

Sweden has discussed payment blocking but has not yet implemented it. IP/DNS blocking is not on the agenda. The only tool against black-market gambling is the Swedish Gambling Authority's oversight — which the National Audit Office in February 2026 assessed as "not effective".

The contrast is stark:

Tool Against Black Market	Sweden	Finland
Player taxation (unlicensed)	No — tax-free	Yes — income tax
Payment blocking (PSP)	Under discussion	Implemented (2023)
IP/DNS blocking	No	Yes (2027)
Domain removal (.fi/.se)	No	Yes
Penalties without licence	Limited	Up to 4% of turnover / €5M
B2B licence (shut suppliers)	No	Mandatory (2028)
Channelisation	69–82% online	Target: 90%

"Sweden faces significant enforcement challenges against the black market. The tools proposed in Finland represent a step in the right direction."

— Antti Koivula, Finnish lawyer specialised in gambling legislation

Criticism: Fair or Disproportionate?

The model is not without critics. Finnish legal experts have pointed out that taxing gross winnings while allowing net losses creates an asymmetry that may be perceived as disproportionate. The industry association BOS has questioned whether the tool actually increases channelisation or simply pushes players to even harder-to-trace channels — cryptocurrencies, VPN-based sites, or informal gambling networks.

Finland's response: player taxation is just one of several tools. The combination of PSP blocking, IP blocking, B2B licences and taxation creates a toolkit that no other Nordic market has. And with €903 million in offshore gambling — an amount that nearly matches Veikkaus' entire revenue — the tools are not disproportionate. They are necessary.

What Does It Mean for Swedish Players?

Nothing — yet. But the question is relevant. If Finland's model proves to increase channelisation, it could become a template for Sweden's ongoing review of gambling legislation. The National Audit Office's criticism of Sweden's gambling work creates political space for exactly such proposals.

"Finland is testing something no one else in the Nordics has dared. If it works — if channelisation increases and offshore decreases — player taxation will become part of the European regulatory toolkit."

— Tommi Korhonen, CEO, Bonusetu.media