Aspinalls Club Limited v Commissioners for Her Majesty's Revenue and Customs

Facts

Aspinalls Club Limited holds gaming licences to operate casinos in the United Kingdom. Since September 2007, following the removal of restrictions by the Gambling Act 2005, it has run Premium Player Programmes designed to encourage a small number of wealthy players — typically some 40 a year out of an estimated 8,000 members, most of them overseas visitors on short trips — to game at its London casino. Under a Premium Player Programme Agreement, generally lasting up to 14 days, the player provides Front Money and usually agrees to a minimum Turnover Requirement. There are three variants: a Cash Chip Agreement, under which the club pays a percentage commission on all cash chips staked whether the player wins or loses; a Rolling Chip Agreement, under which commission is paid on the value of rolling chips staked on losing bets; and a Rebate Agreement, under which the club pays a percentage — typically 5% — of the player's aggregate loss over the relevant period. The club claimed repayment of £1,117,698.13 of gaming duty for the periods from 1 April 2007 to 30 September 2009, contending that these commissions and rebates fell to be taken into account in computing its "banker's profits" under section 11(10) of the Finance Act 1997. HMRC rejected the claim by a decision dated 22 January 2010, and the club appealed to the First-tier Tribunal.