A Swedish poker player has won an important decision against the Swedish Tax Agency (Skatteverket), freeing him from paying taxes on a portion of his online poker winnings. 

The county administrative court (Länsrätten) in Östergoötland ruled that the man did not have to pay Swedish taxes on the 650,000 kronor ($80,900) he won playing online poker on a site based in the Isle of Man, reports the Östgöta Correspondenten newspaper.

However, the man was still liable for paying taxes on winnings earned while playing on a site based in Monaco.

The difference in tax treatment stems from European Union rules stipulating that winnings from games such as poker are free from taxes within the EU.

As the Isle of Man is part of the EU, poker winnings earned there are tax free, whereas those earned in Monaco, which is not a member of the EU, are subject to tax.

Skatteverket had however requested that the man pay taxes on his Isle of Man winnings because not all EU tax rules apply on the island, which is considered British territory.

The agency had told the man that, in order to avoid taxes, he would have to provide evidence that the winnings came from within the European Union.

But the court ruled against Skatteverket’s line of reasoning.

Even if an EU member state doesn’t subscribe to all EU rules, said the court, a specifically cited rule which is sufficiently precise and unconditional, such as EU gaming rules, can indeed apply

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