Policy paper

Remote Gaming Duty: tax treatment of freeplays, prizes and tournament entry

Published 28 October 2026

Who is likely to be affected 

Remote gaming operators liable to Remote Gaming Duty (RGD) that offer customers arrangements commonly referred to as ‘freeplays’, which the new legislation will refer to as ‘restricted plays’. The measure will also affect operators that offer tournaments or other arrangements that may be affected by the amended legislation on tournaments and prizes. 

General description of the measure 

This measure will amend the RGD legislation applying to freeplays (which will now be referred to as restricted plays), prizes and tournaments. The legislation will set out the circumstances in which a restricted play won through the use of another restricted play is excluded when calculating an operator’s RGD profits. The exclusion will apply where the won restricted play is used for remote gaming and no other benefit is offered in place of the won restricted play. 

The measure will also amend the legislation determining when participation in a tournament is treated as playing a game of chance. Additionally, it will amend the meaning of ‘prize’, including a requirement that a prize is provided under the published rules of the game, and specify the circumstances in which the return of a gaming payment following the interruption or termination of a game may be treated as a prize for the purposes of RGD calculations. 

Policy objective 

The objective of this measure is to establish clear rules for the treatment of restricted play, prizes and tournaments for RGD. These changes will provide greater certainty for operators, reduce the scope for dispute and protect future revenues.   

Background to the measure 

Finance Act 2017 amended the Finance Act 2014 rules for RGD, including specific provisions for freeplays. As different interpretations have arisen regarding the tax treatment, the government is amending the legislation on freeplays, prizes and tournaments to provide greater certainty.    

Detailed proposal

Operative date 

The measure will have effect from 1 April 2027. 

Current law  

Current law on freeplays and prizes for RGD is contained in sections 155 to 160 of Finance Act 2014. Relevant tournament provisions are contained in section 188 of the same Act. 

Proposed revisions 

Finance Bill 2026-27 will amend Finance Act 2014 by replacing section 159A with new provisions for restricted play. Restricted play will comprise offers that waive all or part of a gaming payment and non-withdrawable money provided by or on behalf of the gaming provider. 

The legislation will also set out the circumstances in which a restricted play won from the use of another restricted play is excluded for the purposes of RGD calculations. Where a restricted play is won from the use of another restricted play, the won restricted play will be excluded where no other benefit is offered in place of it. 

The legislation will also amend the legislation covering when participation in a tournament is treated as playing a game of chance. Separately, it will revise the meaning of ‘prize’ in the legislation, so that something is only a prize where it is required to be paid or provided under the published rules of the game. It will also specify the circumstances in which the return of a gaming payment following the interruption or termination of a game may be treated as a prize for the purposes of RGD calculations. 

The legislation will also provide powers for the Commissioners for HMRC to make regulations about when a gaming payment is, or is not, treated as waived and when an amount paid or required for participation in a tournament is to be disregarded. 

Summary of impacts 

Exchequer impact (£ million) 

2026 to 2027	2027 to 2028	2028 to 2029	2029 to 2030	2030 to 2031	2031 to 2032
nil	nil	nil	nil	nil	nil

This measure is not expected to have an Exchequer impact. This is an upstream compliance measure intended to reinforce existing policy and is therefore not a scoring measure.  

Economic impact 

This measure is not expected to have any significant macroeconomic impacts.  

Impact on individuals, households and families 

There is no impact on individuals as this measure only affects businesses.  

Equalities impact 

This measure does not affect individuals. Therefore, it is not anticipated that there will be disproportionate impacts on any protected groups. 

Administrative impact on business including civil society organisations 

The measure affects remote gambling operators liable to RGD. It is expected to have a negligible administrative burden. The measure amends Finance Act 2014 to provide greater certainty for affected businesses.  

One-off costs could include familiarisation with the amended legislation. There are expected to be no ongoing costs or savings. This measure is expected overall to have no impact on businesses’ experience of dealing with HMRC. 

This measure is not expected to disproportionately impact civil society organisations.  

Operational impact (£ million) (HMRC or other) 

This change is not expected to have any impact on HMRC systems, compliance activity, or customer service operations, and is not expected to generate any additional costs for HMRC. 

Other impacts 

Other impacts have been considered, and none have been identified. 

Monitoring and evaluation 

This measure will be monitored through routine HMRC compliance and receipts data.

Further advice 

If you have any questions about this change, contact Tom Leaver by email at tom.leaver1@hmrc.gov.uk.