UK to change tax on free spins

The UK government has announced it will rewrite the rules on taxing free spins at online casinos. The decision followed the state's defeat in its legal dispute with Jumpman Gaming. The tax document published with the 2026 Budget said the status of free games, prizes and tournaments under Remote Gaming Duty (RGD) will be clarified.

The dispute arose from a welcome offer made by Jumpman Gaming, part of Super Group, to new customers. Under the offer, a player who made a deposit received a free spin on the Mega Reel game, and this spin could lead to additional spins on other casino games. HMRC demanded about £13.2 million in tax for the period between 2018 and 2022. The First-tier Tribunal accepted this view, but the Upper Tribunal overturned the decision in the company's favour.

Under the planned legal change, free games will from now on be called restricted games. The change also makes clear that restricted games won by using a restricted game will be excluded from the RGD account. The government has not explained exactly how the change will work, but it does not appear likely that the new rules will help the operators HMRC challenged in court.

The document also said the rules on whether taking part in tournaments counts as a game of chance will be changed. The definition of a prize will also be reviewed, and the treatment of prizes awarded under game rules and certain payments made after a game is stopped or ended will be redefined.