RE: Reuters26 Jun 2014 17:43
VAT was previously paid on proceeds of Spot The Ball. However, VAT was not due on games of chance (or combined skill and chance) So the crux of the argument is that STB previously treated by HMRC as a game purely of skill was in fact one of chance or at least chance and skill and therefore exempt.
The 1st Tribunal ruling made it clear that they considered STB was the latter.
http://www.bailii.org/uk/cases/UKFTT/TC/2013/TC02624.html
Its my belief that 2nd Tribunal has also found in favour of Sportech, If so HMRC can still apply to the Supreme Court to try to overturn the ruling. As the original payment of VAT of £40M has now risen to £93M plus £3M interest HMRC have probably paid now to ensure that no further interest continues to accrue whilst they fight what would seem to be a losing battle.