- L & L Europe Ltd operated online casinos with games simulating slot machines and live dealer games
- All payments to customers were treated as winnings, including cashback payments
- HMRC questioned the deductibility of cashback payments for Remote Gaming Duty (RGD) profits calculation
- FTT ruled that cashback payments were deductible as prizes won under section 157, FA 2014
- FTT also considered cashback payments as a return of part of the money wagered by the customer
- The interpretation of ‘prizes won’ was expanded through section 160(3) to include cashback payments
- This case is important for understanding the taxation of online gaming operators under RGD.
Source: rpc.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
