Sportech finally prevails in £97m, seven-year fight with UK taxman

UK-listed gambling operator Sportech got an early Christmas present after finally prevailing in its seven-year, £97m fight with the UK taxman.

On Thursday, Sportech announced that the UK Supreme Court has refused to hear the appeal of Her Majesty’s Revenue & Customs (HMRC) over a value added tax (VAT) repayment relating to Sportech’s Spot the Ball game.

The case dates all the way back to 2009, when Sportech’s Littlewoods subsidiary realized it had paid £40m in VAT on its Spot the Ball game over a 17-year period before realizing that games of chance weren’t subject to VAT. HMRC rejected Sportech’s request for a refund plus interest, and the two sides quickly lawyered up.

In 2013, won its case at the First Tier Tribunal Chamber, which HMRC appealed. In 2014, the Upper Tribunal ruled in favor of HMRC, and Sportech was forced to return the £97m it had received only three months earlier.