Jumpman Gaming Secures Victory in £13.2m RGD Appeal on Free Spins

Jumpman Gaming has successfully appealed a £13.2m remote gaming duty (RGD) assessment, with the Upper Tribunal setting the liability to nil and overturning a prior ruling by the First-tier Tribunal (FTT). This decision relieves the Guernsey-based white-label operator of duty on free spins awarded through its promotional Mega Reel game, clarifying a disputed tax treatment impacting the remote gaming sector.

The Legal Dispute: RGD and Free Spins Interpretation

The case centred on the treatment of free-to-play promotional spins and the additional free spins won by players. Jumpman Gaming paid RGD only on the original Mega Reel promotional spin, not on the subsequent free spins won. HM Revenue & Customs (HMRC) asserted these additional spins were ‘gaming payments’ and taxable, a view backed in September 2025 by the FTT. The Upper Tribunal, led by Judge Swami Raghavan and Judge Guy Brannan, overturned this, finding the FTT had misinterpreted Section 159A(4) introduced by the Finance (No 2) Act 2017 into Chapter 3 Part 3 of the Finance Act 2014.

"[The previous tribunal] reached the wrong conclusion when applying that distinction,” wrote Judges Raghavan and Brannan in a 24-page judgment, holding that duty cannot be traced through "dozens of intervening transactions" from the original promotion.

Upper Tribunal’s Reasoning on Remote Gaming Duty

The Upper Tribunal determined that free spins obtained from the initial Mega Reel promotional offer fall within a statutory exclusion, and so do not generate a liability to RGD. The tribunal explicitly stated the FTT's approach had been “erroneous.” The earlier finding that no liability was due on the welcome offer itself was not disturbed. The ruling emphasised that attempts to attribute duty through successive free spin transactions were unsupported by the legislative framework established by the 2017 and 2014 Finance Acts.

Immediate Impact on Remote Gaming Operators

The judgment has wide-reaching implications for online casino operators and the broader remote gaming sector. Specialist law firm Resolution Tax noted operators have applied different RGD treatments to promotional free spins; some accounted for RGD, others did not. Businesses anticipating retrospective tax exposure may have already adjusted provisions, contingent liabilities, or reported tax positions, while those that paid historic RGD now have potential grounds to claim repayments.

Resolution Tax advises operators, "should now review historic positions as a matter of priority," both to mitigate risks and to seek opportunities for retrospective repayment claims if applicable. The details of the Upper Tribunal's conclusions clarify the permitted tax stance on free-spin promotions for future compliance and audit purposes.

Sector Context: Tax Changes and Commercial Pressures

The April rise in RGD from 21% to 40% has already produced significant sector effects. Major operators, including Betfred, Entain, and bet365, have instituted redundancies and closed retail outlets in response to increased fiscal burdens. In September, Betfred founder Fred Done warned that a government increase of machine games duty from 20% to 40% could prompt further operational cuts, pending confirmation in the upcoming Autumn Budget.

These ongoing regulatory and tax changes reinforce the importance of vigilance in fiscal and legal compliance across the sector. The resolution of the Jumpman case brings a degree of clarity regarding the treatment of promotional spins, but the broader duty environment remains volatile, underscoring risk management’s central role for operators negotiating historic and prospective tax positions.

Next Steps for Operators Following the RGD Free Spins Ruling

Operators should now:

• Audit historic RGD treatment for promotional spins, focusing on positions taken since the FTT’s original decision
• Assess existing provisions, contingent liabilities, and tax disclosures in light of the Upper Tribunal’s finding
• Evaluate and pursue repayment claims where historic RGD was incorrectly paid
• Monitor developments around further tax increases or regulatory changes, especially as the Autumn Budget approaches

Operators are also encouraged to consider future structuring of promotional offers and corresponding tax accounting to remain aligned with this clarified interpretation. Maintaining close communication with legal and tax advisors, and actively scanning the evolving legislative landscape, will be critical steps as fiscal requirements continue to evolve for remote gaming businesses.