Jumpman Gaming has won an Upper Tribunal challenge over whether free spins awarded through its Mega Reel promotion attracted Remote Gaming Duty, preserving about £13.2 million that HMRC had sought to assess.
The Tax and Chancery Chamber upheld the First-tier Tribunal’s conclusion that the later spins were not taxable where the free promotional spin that generated them was itself outside the tax charge. The decision, issued on Sept. 25 by Judge Raghavan and Judge Brannan, concerned HMRC’s appeal in Jumpman Gaming Ltd v The Commissioners for His Majesty’s Revenue and Customs, reported as [2026] UKUT 00364 (TCC).
The dispute turned on a two-stage promotion. A player received an initial free Mega Reel spin, which could award further spins on other games. HMRC argued that those follow-on spins were dutiable under section 159A of the Finance Act 2014, even though the original promotional spin was not.
The Upper Tribunal agreed with the earlier Tax Chamber ruling that the tax treatment of the triggering spin determined the treatment of the later prizes in this structure. Gambling.com, which reported the case, said the result removed a prospective Remote Gaming Duty liability of roughly £13.2 million.
The ruling clarifies the treatment of promotions in which a free initial play unlocks additional plays on separate games. At the time of Gambling.com’s report, HMRC had not said whether it would pursue a further appeal.
Remote Gaming Duty has applied to remote gaming since Dec. 1, 2014. HMRC defines remote gaming as participation from a distance in a game of chance for a prize, and defines freeplays as offers to play for free or at a reduced fee.
HMRC’s published guidance says the Finance Act 2017 rules generally require duty on covered freeplays as though they were fully paid, non-discounted stakes, for accounting periods beginning on or after Aug. 1, 2017. The duty is now charged at 40% of a provider’s profits from remote gaming with UK customers, following an increase from 21% on April 1.
The tax is levied on a place-of-consumption basis, requiring operators to pay UK duty on gross gambling profits from UK customers regardless of where the operator is based. The Jumpman decision addresses how those rules apply to a promotional structure in which an initial free spin can unlock further spins on separate games.
