HMRC proposes freeplay tax changes after Jumpman ruling as Finance Bill 2026-27 takes shape

HMRC has published a policy paper proposing changes to how Remote Games Duty (RGD) applies to freeplays such as free bets and free spins, following Jumpman Gaming’s Upper Tribunal win over promotional bet taxation. For betting and gaming operators, the practical point is simple: the rules around promotional value, tournaments, and “prizes” are about to get more explicit, and the tax treatment is being rewritten in the same package as the 2027 duty increases.

1. The proposal would amend the 2014 Finance Act so that “freeplays” are referred to as “restricted plays.” HMRC says the revised rules would affect operators offering tournaments or other arrangements where freeplays are used, which is the sort of detail that can move real money once it is wired into product and tax calculations.
2. HMRC wants to spell out when a freeplay won from another freeplay can be excluded from an operator’s tax bill. Under the proposed wording, a won freeplay would be excluded when it is used for remote gaming and when no other benefit has been offered as a result of its use, meaning no further freeplay has been won through that use.
3. The paper also proposes changing the definition of a “prize.” Under HMRC’s draft approach, something counts as a prize only when it is required to be paid or provided under the published rules of a game. HMRC says this could also mean a return of payment when a game is interrupted or terminated is treated as a prize.
4. Another proposed change would classify playing a free tournament as playing a game of chance. HMRC also wants to give its commissioners extra powers to decide when a gaming payment is, or is not, treated as waived and when an amount paid to participate in a tournament is disregarded.
5. The proposals sit inside Finance Bill 2026-27 and would take effect from 1 April 2027. That is the same date that General Betting Duty (GBD) rises from 15% to 25% and the rate of MGD on Category B gaming machines rises from 20% to 25%.

HMRC says the aim is to create “clear rules” for how restricted plays, prizes, and tournaments are taxed via RGD. For operators, PSPs, and payment teams supporting betting products, the main issue is not the label change itself; it is the knock-on effect on promo mechanics, accounting treatment, and how much of a promotional structure ends up inside the tax base.