Bill puts free spins within tax scope

The UK government's Finance Bill 2026/2027, published on Wednesday 4 November, tightens the taxation of promotional free spins, prizes and tournament play. Under the bill, this change will take effect from April 2027. The bill also leaves room for refund claims.

Jumpman, an iGaming operator owned by Super Group, had HMRC's claim rejected by the Upper Tribunal on 25 September. HMRC had argued that the company owed 13.2 million pounds in RGD for July 2018 to December 2022. The welcome offer the company gave new customers awarded free spins on the Mega Reel game. These spins could in turn give additional free spins on other casino games. HMRC argued that these spins should count as gaming payments, but it lost on appeal.

The bill's new definition of "restricted gaming" sets out in detail which prizes will fall under the RGD exemption. According to former HMRC officer and tax specialist Gavin West, free spins and bonuses will count as exempt only if they are won from a bonus game. Jumpman's spins, however, do not fall into this category because they were won from a game that could always be played for free. The government also said it aims to firmly clarify the tax treatment of free play, prizes and tournaments.