Value of gamblers’ non-negotiable chips

The appeal concerned non-negotiable chips and promotional vouchers (non negs) which are worth their face value when played in a casino game. The issue was whether a player who placed a bet in one of London Clubs Management Ltd’s casinos using these had staked ‘value in money or money’s worth’ within the meaning of FA 1997 s 11(10)(a).

From October 2008 until September 2012 London Clubs Management included the face value of all the non-negs when calculating its banker’s profits for the purposes of gaming duty. It later considered this approach was incorrect and claimed gaming duty it alleged had been overpaid. HMRC rejected its claim.

The First-tier Tribunal dismissed LCM’s appeal. The Upper Tribunal overturned that decision and the Court of Appeal dismissed HMRC’s appeal. The department then appealed to the Supreme Court.

Lord Kitchin said that non-negs were neither ‘stakes staked’ nor did they have any value in...