UK-based online gambling company Sportech PLC won on Wednesday a seven-year court dispute with Her Majesty’s Revenue & Customs on a £97-million VAT repayment on the ‘Spot the Ball’ game the Sportech had provided in the period between 1979 and 1996.
Founded in the 1920s, the gambling company claimed that was owed a VAT repayment of £40 million plus interest added. Sportech had paid the aforementioned amount on the game within the period between 1979 and 1996. The company argued that the ‘Spot the Ball’ game was one of luck and did not require any particular skills. Basically, the said game involved betting customers looking at a picture from a football match. Players only had to guess the ball’s position.
Sportech has been offering ‘Spot the Ball’ for about 50 years. The game was extremely popular in the 1970s. Being a game of chance, the company claimed that it was exempt from VAT.
Sportech filed its first claim against HMRC in 2009. The gaming provider won a tribunal case three years later. The case stated that Sportech was owed the total amount of £95 million by the tax authority. However, HMRC managed to appeal the claim successfully. This resulted in another case in 2014, one that Sportech lost and had to return the money.
In April, the gambling company revealed that its latest appeal had been submitted to the UK Court of Appeal, as it was determined to resolve the seven-year dispute.
HMRC has up until May 13 to apply for permission to take the latest decision of the UK Court of Appeal to the Supreme Court. If this happens, the dispute may take a few more years before eventually solved.
Commenting on the Wednesday court decision, Sportech CEO Ian Penrose said that given the fact they had gone through a number of stages of the court process over the past seven years, they are extremely pleased with the latest turn of events. Mr. Penrose also pointed out that Sportech shareholders will be informed about the successful appeal in due time and manner.
Annually, Sportech processes more than £8.5 billion in bets. The company currently operates in more than 30 countries and holds a license to operate across the US.
