In an update on the operator’s FY2025/26 results published on Thursday, Rank Group CEO Richard Harris took aim at recent developments which have, and could continue to, impact the UK’s retail casino sector.
Likely referencing a recent report by the Social Market Foundation, calling for increased duty on ‘higher-risk Category B electronic gaming machines’, Harris said anti-gambling campaigners had “cast clouds” over the UK’s regulated gambling sector.
This year the sector has faced increased remote gaming duty, from 21% to 40%, and this week new Prime Minister Andy Burnham sought to provide councils with more powers to restrict Adult Gaming Centers.
He went on to describe betting shops as “dodgy businesses”, comparing them to the growing number of vape shops on the UK high-street.
Harris argued that higher taxes could ultimately prove counterproductive by undermining the viability of land-based gambling businesses.
“Tax proposals from anti-gambling campaigners continue to cast clouds over a regulated industry that is proud to support jobs across the country, deliver great hospitality experiences to millions of customers and Rank paid over £225 million in taxes and duties last year,” he explained.
“Tax increases for clubs like ours, with high levels of supervision and operating on tight margins, will swiftly lead to lower tax receipts as much-loved bingo halls and casinos will be forced to close, impacting customers in local communities. The government has supported bingo clubs like ours in recent years and any tax increase would have a material impact on commercial viability.”
Rank Group achieves 5% NGR growth
During the full-year, between June 2025 and June 2026, Rank Group achieved a NGR growth of 5% to £835 million ($1.13 billion, led by a strong performance from its digital division.
Underlying EBITDA also rose 15% on the year prior to £138.3 million, while underlying operating profit surged 21% to £78.6 million.
The company looked to address tax and regulatory headwinds through mitigating cost actions and efficiency savings.
Despite that, reported operating profit fell 7% from £60.1 million to £55.7 million. And various tax increases clearly impacted the operator as profit after tax plummeted 23% to £29.9 million.
Several of the figures Rank gave were on a like-for-like basis, removing the impact of venue openings, closures, FX movements, discontinued operations and new markets that haven’t yet been open for more than 12 months.
The group’s underlying like-for-like NGR rose 6% to £834.1 million, while underlying like-for-like operating profit increased 20% from £66.7 million to £79.9 million.
Rank closed the year with a net free cash flow of £25.5 million, down from £27.7 million the previous year, although net debt improved from £154.7 million to £147.2 million.
Digital performs particularly strongly
Rank’s underlying like-for-like NGR from its digital segment surged 8% to £248.5 million, outpacing that of its venues.
In Q4, digital like-for-like revenue grew 12%, which Rank said was “particularly encouraging” and helped to secure robust profit delivery for the financial year.
In terms of its retail venues, average weekly NGR from Rank’s Grosvenor casinos rose 5% year-on-year to £7.6 million. Customer visits and spend per visit also increased.
Rank attributed this growth to the rollout of 850 machines in 37 casinos across the year, although it also noted performance in table gaming was hampered by the conflict in the Middle East.
Meanwhile, NGR from Rank’s Mecca venues also grew 4% on a like-for-like basis, although nine commercially unviable venues closed during the year.
Rank also commented on the “strong trading momentum” it had observed over the first six weeks of its new financial year, in which group NGR has risen 8%.
Digital again led this, with revenues from that segment up 10%, while Grosvenor gaming machine revenue also rose 15%.
Looking ahead, Rank reiterated its ambition to deliver over £100 million in underlying operating profit “in the medium term”.
However, the company conceded that digital profitability would dip in FY’26/27 due to the near doubling in remote gaming duty.
In terms of its land-based operations, Rank warned that maintaining the rate on machines games duty was “critical”.
“Currently set at 20%, any increase to the rate will further impact venue viability across both Grosvenor and Mecca and will lead to a reduction in tax receipts within 12 months,” the company said.
Personnel changes at Rank
In July, Rank announced Richard Harris as its new permanent CEO.
Harris had been in the role on an interim basis after John O’Reilly stepped down in January following nearly 10 years at the helm.
In July, the company also announced Karen Whitworth was to step down from the board, and now Rank has stated Lucinda Charles-Jones will do the same after the AGM on 8 October.
Non-executive director Katie McAlister will assume Charles-Jones’ role as Rank’s remuneration committee chair on an interim basis following the AGM.
Rank also said it will look to appoint Whitworth’s replacement as a new senior independent director in due course.
Original article: https://igamingbusiness.com/finance/rank-group-ceo-anti-gambling-campaigners-cast-clouds-uk-casino-sector/
