Jumpman Gaming has won a major UK tax appeal over the treatment of promotional free spins, removing a £13.2m Remote Gaming Duty liability imposed by HM Revenue and Customs.
The Upper Tribunal ruled in favour of the Guernsey-based online gaming operator in its dispute with HMRC over free spins awarded through Jumpman’s Mega Reel promotion. The judgment, issued on 25 September, overturned a key part of a September 2025 First-tier Tribunal decision that had previously supported HMRC’s interpretation.
The dispute covered accounting periods from 1 July 2018 to 31 December 2022. HMRC argued that although Jumpman’s initial promotional Mega Reel spin was not taxable, additional free spins won through that game should count when calculating the operator’s Remote Gaming Duty.
Jumpman challenged that interpretation, maintaining that the subsequent spins qualified for an exclusion available under UK gambling tax legislation.
Upper Tribunal overturns free-spin interpretation
The dispute centred on provisions introduced through the Finance Act 2017 governing promotional freeplay, alongside the Remote Gaming Duty framework contained in the Finance Act 2014.
Under the rules, certain participation in games where operators waive the normal payment can be treated as if a gaming payment had been made. However, legislation also contains exemptions covering some later freeplay participation resulting from winnings.
HMRC’s position was that the exemption for later free spins only applied where those spins could ultimately be traced to a game for which a normal payment had been waived. Since Jumpman’s original Mega Reel promotion was always free to play rather than a paid game temporarily offered for free, HMRC argued that free spins subsequently won through it fell outside the exemption.
The First-tier Tribunal accepted that interpretation in September 2025 and dismissed Jumpman’s original appeal.
The Upper Tribunal reached a different conclusion. It found that the earlier tribunal had interpreted the relevant legislation too narrowly and ruled that the additional free spins won through Mega Reel fell within the statutory exclusion.
As a result, neither the initial promotional spin nor the subsequent free spins at the centre of the dispute generated Remote Gaming Duty liability. The ruling therefore removes the £13.2m assessment relating to the disputed promotional activity.
The Upper Tribunal also found that the First-tier Tribunal should have considered consultation documents published before the freeplay tax rules were introduced in 2017. Those materials formed part of the wider context surrounding Parliament’s changes to the taxation of gambling promotions.
Decision could affect other UK operators
The judgment could have consequences beyond Jumpman because other operators using comparable promotional structures may reassess how Remote Gaming Duty applies to free spins and similar incentives.
Legal analysis from Pinsent Masons noted that operators are likely to examine whether their own promotional mechanics could benefit from the interpretation adopted by the Upper Tribunal. The firm also suggested that the decision could eventually prompt HMRC or the government to reconsider the wording of the legislation if the outcome differs from the policy originally intended.
The case arrives during a significant shift in UK gambling taxation. Remote Gaming Duty increased from 21% to 40% on 1 April 2026, substantially raising the tax burden attached to online casino gaming profits generated from UK customers.
The Jumpman dispute concerns periods before that increase and is separate from the wider debate over the new rate, but the ruling provides an important precedent for how promotional play is treated when operators calculate taxable remote gaming profits.
HMRC may still seek to challenge the Upper Tribunal judgment, meaning the legal position could face further scrutiny before the dispute is fully settled.