UK Upper Tribunal Sides with Jumpman Gaming in HMRC Freeplay Tax Dispute

The UK’s Upper Tribunal has ruled in favor of Jumpman Gaming, a Super Group-owned iGaming company, in its dispute with HM Revenue & Customs (HMRC). The decision spares the operator from paying GBP 13.2 million ($17.5 million) in remote gaming duties tied to free spins from its Mega Reel promotion.

The case turned on the tax treatment of free spins awarded to customers who made a qualifying deposit. The Mega Reel mechanism granted an initial spin that unlocked further free spins on various games.

HMRC Claimed That Jumpman Owed Millions in Taxes

HMRC maintained that free spins earned from the initial spin counted as gaming payments. Under this view, those spins fell under the UK’s remote gaming duty (RGD). The authority pursued recovery for promotional bets placed between July 2018 and December 2022.

Tribunal Rules Freeplay Exclusion Applies to Subsequent Spins

The Upper Tribunal found HMRC’s interpretation of Section 159A of the Finance Act incorrect. Because the original Mega Reel spin was not taxable, the subsequent spins generated from it are not taxable either. The tribunal observed that HMRC’s position would have required operators to track long freeplay transaction histories. The ruling supplies clarification on freeplay promotions and could help other operators avoid similar taxes. HMRC could still appeal.

As reported by GamblingNews, the outcome delivers a clear win for Jumpman Gaming on the specific facts of its promotion.

Reporting: GamblingNews

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