UK Finance Bill changes remote gaming duty rules from April 2027
Regulation2 min read
In brief
- The restricted play changes apply to gaming beginning on or after 1 April 2027.
- HMRC would gain power to make regulations on when gaming payments count as waived.
- The Upper Tribunal ruled for Jumpman Gaming on 25 September against a £13.2m RGD assessment.
The government's Finance Bill 2026/2027 was published on Wednesday 4 November and set out several key amendments. Among other things, it gives HMRC new discretionary powers over how it applies Remote Gaming Duty, without the need for further primary legislation. The report notes that the changes to restricted play only apply to gaming beginning on or after 1 April 2027.
The bill also narrows what can count as a "prize" for relief purposes. L&L Europe, an online casino operator, won an appeal in 2024 against an £807,284 RGD assessment tied to cashback paid to players. Under its promotion, players who had lost all their deposits in a session could claim 10% cashback, and a tribunal found this deductible from RGD as prizes. According to the report, a range of new conditions in the prize definition is set to remove that precedent.
Tournaments that are free to play stay untouched by RGD. Play that results from spins won at those events, though, falls outside the restricted play exclusions and would be taxed as a result. A tournament that charges an entry fee would now sit explicitly inside RGD's scope.
Tax lawyer Stephen Hignett said in September that operators "should consider applying to HMRC for a refund of RGD" following the Jumpman ruling. The report said that because the restricted play changes apply only from 1 April 2027, further refund claims are not ruled out. West described the forward-looking impact as "pretty damaging for customer retention and acquisition strategies".
Companies within the Thomas and Noble groups avoided a £3.25m tax bill in October, ending an 18-year dispute over Amusement Machine Licence Duty, which no longer exists.