Budget 2026: HMRC rewrites the tax rules for free spins from April 2027
Tucked into the 28 October 2026 Budget is a change aimed squarely at free spins. From 1 April 2027, HMRC will rename freeplays as “restricted plays” and set new rules for when they count towards an operator’s Remote Gaming Duty bill. It follows a September tribunal ruling that cost HMRC a £13.2 million assessment over free spins won from other free spins.
By Ryan Jessop. Published .
Key points
- HMRC published the measure on 28 October 2026; it takes effect on 1 April 2027 through the Finance Bill 2026-27.
- Freeplays will be called “restricted plays”: offers that waive all or part of a stake, and non-withdrawable money given by the operator.
- The change follows Jumpman Gaming v HMRC, where the Upper Tribunal cancelled about £13.2m of duty on spins won from a promotional spin.
- HMRC says players are not directly affected and puts the revenue effect at nil, but operators will review how their spin offers are built.
- Remote Gaming Duty itself stays at 40%, the rate in force since 1 April 2026.
- Announced
- 28 October 2026
- Takes effect
- 1 April 2027
- New term
- Restricted plays
- Duty rate
- 40% (unchanged)
- Trigger case
- Jumpman Gaming v HMRC
What the Budget changed
HMRC’s policy paper, published on Budget day, amends the Finance Act 2014 rules on Remote Gaming Duty (RGD), the tax online casinos pay on their gaming profits. Three things change from 1 April 2027:
- Freeplays become “restricted plays”. The new term covers any offer that waives all or part of a stake, plus non-withdrawable money supplied by or for the operator.
- Spins won from spins. The law will set out exactly when a restricted play won by using another restricted play is left out of the operator’s profit calculation.
- Prizes and tournaments. The definition of a prize is narrowed, and the rules on when tournament entry counts as gaming are tightened.
HMRC describes the purpose as giving operators certainty, cutting the scope for disputes and protecting future revenue. It expects no change in receipts, calling it a compliance measure that reinforces existing policy.
The case behind it
On 25 September 2026 the Upper Tribunal ruled in Jumpman Gaming Ltd v HMRC that free spins won through Jumpman’s “Mega Reel” welcome promotion did not attract duty. HMRC had assessed about £13.2 million for July 2018 to December 2022, arguing that only spins won from an earlier freeplay were exempt. The tribunal read the words “the gaming” more broadly: a free spin won from any remote game, including one that is always free to play, fell within the exclusion. The First-tier Tribunal had sided with HMRC in September 2025. Whether HMRC will appeal the Upper Tribunal decision is not yet known.
Will free spins offers change?
Not overnight, and HMRC says the measure has no direct impact on individuals. But welcome offers here are built almost entirely on spins, and operators already pay 40% duty on gaming profits. Promotions that hand out spins from a free wheel or a “spin to win” game are the most likely to be redesigned before April 2027. The three offers we list (Coral, Ladbrokes and PlayOJO) are straightforward deposit-and-play spins with no wagering, so there is nothing in the change that obviously targets them.
What it means for you
Your free spins winnings are still not taxed: UK players pay no tax on gambling winnings, whatever the operator pays. What could change is the shape of offers over the next few months, so read the terms on any deal you claim, and judge it by its spin value and wagering rather than the headline number. Our free spins tax answer covers the player side.
Slot figures are developers' published defaults, each confirmed against two sources; your casino may run a lower RTP. Offer terms dated 9 October 2026. How we check. 18+. Free help: 0808 8020 133 or safer gambling.
Frequently asked questions
Are free spins being taxed from April 2027?
Operators already pay Remote Gaming Duty on some freeplays. From 1 April 2027 the rules are rewritten and freeplays are renamed restricted plays. Players still pay no tax on winnings.
What is a restricted play?
HMRC’s new term for a freeplay: an offer that waives all or part of a stake, or non-withdrawable money provided by the operator.
What was the Jumpman case?
An Upper Tribunal ruling on 25 September 2026 that cancelled about £13.2m of Remote Gaming Duty on free spins won from Jumpman Gaming’s promotional Mega Reel spin.
Related pages
Sources
- HMRC: Remote Gaming Duty, tax treatment of freeplays, prizes and tournament entry (opens in a new tab)
- CMS: Autumn Budget 2026 changes for Remote Gaming Duty on promotional games (opens in a new tab)
- Gambling.com: Jumpman Gaming wins tribunal fight over £13.2m freeplay tax bill (opens in a new tab)
- European Gaming: Upper Tribunal ruling on free spins and RGD (opens in a new tab)
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