UK to Change Free Spin Tax Rules

The UK government will change the Remote Gaming Duty rules on free spins, prizes and tournaments at online casinos. The decision follows the Upper Tribunal ruling, which went in favour of Jumpman Gaming. The changes will take effect on 1 April 2027.

According to the Budget 2026 document, free games will be redefined as "restricted games". The new rules state that a further restricted game won through a restricted game will be excluded from the tax calculation. The document also says that the point at which taking part in a tournament counts as a game of chance will be clarified. The definition of a prize will be widened to cover prizes awarded under the game rules, as well as payments arising from a game being cut short or terminated.

The case stems from a tax assessment of about 15.8 million euros (13.2 million pounds). HMRC had assessed Jumpman Gaming for this amount for periods between July 2018 and December 2022. The dispute arose from a free spin on Mega Reel that was part of a welcome offer. The First-tier Tribunal had accepted HMRC's interpretation. The Upper Tribunal, however, accepted two grounds of appeal, treated the additional spins as falling within the statutory exemption, and reduced the related assessments to zero.

This development comes at a time when the tax rate rose from 21 percent to 40 percent on 1 April 2026. Operators may need to map their bonus structures and update their tax systems to reflect the new rules. However, the Budget document does not explain all the commercial consequences. Precise definitions and calculation methods will become clear when the draft Finance Bill is published.