Jumpman Gaming beats HMRC in $17.5m freeplay tax fight

HMRC had pursued taxes on Jumpman’s Mega Reel free spins dating back to July 2018.

The hit

Jumpman Gaming has beaten HMRC at the UK’s Upper Tribunal, avoiding roughly £13.2m ($17.5m) in remote gaming duty. The tribunal ruled that free spins generated through the Super Group-owned firm’s Mega Reel promotion are exempt from taxation, siding against HMRC’s reading of the Finance Act.

Why it matters

HMRC had argued that spins won from Jumpman’s initial free Mega Reel spin counted as taxable gaming payments. The tribunal disagreed, ruling the freeplay exclusion covers knock-on spins too, not just the original promotion. The decision spares Jumpman a large tax bill & gives other UK operators running similar freeplay promotions a clearer, more favourable read of the rules on remote gaming duty.

The record

Tax avoided	£13.2m ($17.5m) in remote gaming duty (Upper Tribunal)
Promotion disputed	Mega Reel free spins, July 2018 to December 2022 (HMRC)
Legal basis of ruling	Finance Act Section 159A freeplay exclusion misapplied by HMRC (Upper Tribunal)
Owner	Jumpman Gaming is owned by Super Group

What happens next

HMRC could still appeal the Upper Tribunal’s ruling. Watch for confirmation of whether it does, & whether other UK operators cite the decision to challenge their own remote gaming duty bills.

Sources: Jumpman Gaming Scores Court Victory & Avoids $17.5M in Freeplay Taxes

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