Sportech tackles HMRC over £40m VAT bill

NORTH West gaming company Sportech has submitted a claim to the Government for the repayment of more than £40m in VAT.

The Liverpool company believes VAT was overpaid in respect of its “Spot The Ball” game which was offered from 1979 to 1996. 
 
In a statement the football pools operator said: “Sportech contends that the VAT was paid in error and is repayable.  Interest may also be added to the principal sum claimed, if applicable.”

The company said it could “give no guarantees as to the successful outcome of this claim”, and had been advised that it may take a number of years to reach a final decision.

Last week Sportech revealed a 39% hike in profits and said its attempts to modernise the pools was paying off after arresting a 15-year decline in the number of people playing.

Sportech argues that the competition – where punters try to place the ball missing from a football action photograph – is a game of chance, which should not be subject to VAT.

According to HMRC, a game of chance is defined as a game of pure chance – such as roulette – or a game of chance and skill combined, where a player cannot eliminate chance unless by using “superlative” skill.

Up to 40,000 punters play Spot the Ball each week, hoping to win prizes worth thousands of pounds.