Upper Tribunal Sides with Jumpman Gaming in Dispute over Remote Gaming Duty on Free Spins
The UK Upper Tribunal ruled stakes from promotional free spin winnings are excluded from Remote Gaming Duty, eliminating Jumpman Gaming’s £13.2m assessment. It overturned the First-tier Tribunal’s September 2025 decision after reviewing the Finance Acts of 2014 and 2017. HMRC retains the right to appeal.
SCCG Take — The precedent offers operators defined scope for promotional free spins but the appeal option keeps fiscal exposure open amid scheduled tax rises to 40 per cent and 25 per cent.
A UK tax tribunal has ruled in favor of online casino operator Jumpman Gaming in its dispute with HM Revenue & Customs (HMRC). The Upper Tribunal overturned key parts of an earlier decision, removing a £13.2m Remote Gaming Duty assessment tied to the treatment of winnings from promotional free spins.
The Guernsey-based company, which focuses on online slot games, challenged the bill covering July 2018 to December 2022. The dispute concerned the Mega Reel promotion, under which customers receive free spins with no initial stake. HMRC argued that any winnings from those spins became subject to duty once re-wagered by customers. Jumpman Gaming maintained that such stakes fall outside the duty’s scope.
Tribunal Proceedings and Legislative Interpretation
The First-tier Tribunal ruled for HMRC in September 2025. On appeal, the Upper Tribunal examined the interplay between the Finance Act 2014, which established the Remote Gaming Duty framework, and the Finance Act 2017, which addressed promotional offers including free spins. Central to the case was the statutory phrase covering amounts won “in the course of the person’s participation in the gaming.”
The Upper Tribunal adopted a broader reading than the First-tier Tribunal and held that stakes funded by winnings from promotional free spins should be excluded from Remote Gaming Duty. This produces a precedent on the tax treatment of such promotional products, according to reporting by Focus Gaming News.
The Remaining Uncertainty
HMRC retains the option to appeal the Upper Tribunal decision, leaving the final status of the £13.2m assessment unresolved. The outcome matters at a time when Remote Gaming Duty has risen from 21 per cent to 40 per cent as of April 2026, a new 25 per cent General Betting Duty is scheduled for April 2027, and further changes to Machine Games Duty remain under consideration.
Operators facing similar promotional structures now have clearer authority on one interpretive point, yet the possibility of further litigation means the practical application of the ruling is not yet settled. Regulators and licensees will track whether this clarification endures or narrows in subsequent proceedings.
Reporting: Focus Gaming News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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