HMRC proposes Remote Games Duty changes on free bets and free spins after Jumpman tribunal win

HM Revenue and Customs has put forward changes to how Remote Games Duty applies to promotional offers such as free bets and free spins. The proposal appeared in a policy paper released the day after the UK budget, which drew most industry attention for raising Machine Games Duty by five points.

The amendment would alter the 2014 Finance Act. Under it, what the legislation calls "freeplays" would be renamed "restricted plays". Operators that run tournaments or other arrangements would fall within the amended rules. HMRC wants to define precisely when a freeplay won through another freeplay can be left out of an operator's tax calculation. A won freeplay would be excluded if it is used for remote gaming and no further benefit results from using it, for example if it does not lead to winning another freeplay.

The tax authority also intends to redefine a "prize". Something would count as a prize only if the published rules of a game require it to be paid or provided. As a result, a refund of a payment when a game is interrupted or ended could also be treated as a prize. In addition, HMRC would classify playing a free tournament as playing a game of chance, and would give its commissioners extra powers to decide when a gaming payment is treated as waived and when an amount paid to enter a tournament is disregarded.

The measures form part of Finance Bill 2026-27 and would take effect on 1 April 2027. That is the same date on which General Betting Duty rises from 15% to 25% and the Machine Games Duty rate for Category B gaming machines goes from 20% to 25%.

HMRC says it wants to set out clear rules for restricted plays, prizes and tournaments, giving operators greater certainty, reducing the scope for disputes and protecting revenues.

The timing follows a recent Upper Tribunal ruling in favour of Jumpman Gaming. The tribunal found that applying Remote Games Duty to money re-wagered after being won through free bets was incorrect, which wiped out the operator's £3.2m tax bill. The proposed legislation appears aimed at preventing similar disputes over how free games given after deposits or bets are taxed.