The Upper Tribunal overturned a £13.2m Remote Gaming Duty assessment against Jumpman Gaming covering July 2018 to December 2022. The ruling may reset tax exposure across UK online casino operators.
The dispute centred on free spins awarded through the Mega Reel promotion after a player's first deposit. HMRC argued that subsequent free spins generated by the promotion were taxable under RGD. The First-tier Tribunal sided with HMRC, but the Upper Tribunal reversed that decision, ruling that section 159A of the Finance Act 2014 does not require operators to trace the origin of every free spin and that promotional games fall within the RGD exemption. The assessment was quashed.
The case affects more than Jumpman. Evoke, which owns William Hill, had identified £17.6m in potential exposure tied to the outcome. Super Group, which owns Jumpman and Betway, had reserved $26.4m for possible assessments and penalties, including $16.9m related to RGD. Jumpman operates around 200 brands and accounts for nearly all of Super Group's UK casino revenue.
Timing matters: RGD increased from 21% to 40% on 1 April 2026. For operators whose acquisition and retention models rely on free spins and bonus mechanics, the tax treatment of promotions has become material. HMRC can appeal, but the precedent now favours the industry.
