UK operators that paid Remote Gaming Duty on free spins from promotional games should consider claiming refunds after a tribunal ruling in favour of Jumpman Gaming. Tax lawyer Stephen Hignett, partner at CMS UK, said the decision opens the door to retrospective claims.
The Upper Tribunal on 25 September overturned a £13.2 million RGD assessment against Jumpman, reducing the liability to zero. The dispute centred on a welcome offer: players who deposited spun a free Mega Reel game that awarded free spins for use in other slots. HMRC argued those spins were taxable under RGD; Jumpman challenged and won.
The ruling applies to a specific mechanic. If a player wins free spins in a game that is always free to play, using those spins in paid slots is now exempt from RGD. The tribunal found that spins won in any game—paid or free—are not taxable when used.
That does not exempt all free spins. Where an operator awards spins directly in a paid slot, RGD applies to the first game but not to spins won from it. Where spins are won in a game that was free from the start, HMRC had charged RGD on their use. That position is now overturned.
Operators have four years to claim refunds. Evoke has publicly disclosed potential assessments under the same scheme. Hignett warned HMRC may appeal, so the matter is not closed. For now it marks a rare win for the sector amid rising tax and regulatory pressure.
