Rank Group CEO Richard Harris warned that higher gambling taxes could threaten the viability of bingo halls and casinos in Britain, as the owner of Mecca Bingo and Grosvenor Casinos reported higher annual gaming revenue but lower statutory profit.
Harris criticized proposals from anti-gambling campaigners to increase taxes on gaming machines, saying further rises could put pressure on land-based gambling businesses operating on tight margins.
“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,” Harris said.
This year the sector has faced increased remote gaming duty, from 21% to 40%. Think tank Social Market Foundation has also discussed raising Machine Games Duty (MGD) on slot and fruit machines from 20% to 40%, a move estimated to raise about £460 million ($623.31 million).
Harris warned that higher taxes could ultimately reduce government revenues by forcing gambling venues to close.
“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,” he said.
“The government has supported bingo clubs like ours in recent years, and any tax increase would have a material impact on commercial viability.”
Rank said any increase in MGD would affect the viability of its Grosvenor and Mecca venues.
“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.
Rank’s gaming revenue rose 5% to £835 million ($1.13 billion) in the year to June 2026. Underlying EBITDA increased 15% to £138.3 million ($186.99 million), while underlying operating profit rose 21% to £78.6 million.
Reported profit after tax, however, fell 23% to £29.9 million, reflecting the impact of higher taxes and other pressures.
Rank’s digital business performed strongly, with like-for-like net gaming revenue rising 8% to £248.5 million. Digital revenue increased 12% in the fourth quarter.
At its Grosvenor Casinos business, average weekly net gaming revenue increased 5% to £7.6 million. Rank rolled out 850 new gaming machines across 37 casinos during the year, although it said table gaming performance was affected by the conflict in the Middle East.
Mecca’s like-for-like net gaming revenue increased 4%, while the group closed nine commercially unviable venues as it continued to reduce its bingo estate. Gaming machine revenue at Mecca rose 6% and accounted for 42% of the business’s gaming turnover.
Rank said trading had remained strong at the start of its new financial year, with group net gaming revenue up 8% in the first six weeks. Digital revenue rose 10%, while Grosvenor gaming machine revenue increased 15%.
The company reiterated its ambition to generate more than £100 million in underlying operating profit in the medium term. It expects digital profitability to decline in the 2026/27 financial year as Remote Gaming Duty has increased from 21% to 40%.
Rank’s warning comes as other gambling companies also raise concerns about tax increases. Entain, the owner of Ladbrokes, has criticized the government’s increase in remote gambling taxes, saying it had weighed on underlying earnings.
Original article: https://www.yogonet.com/international/news/2026/08/17/125911-rank-group-warns-uk-gambling-tax-hikes-could-force-bingo-halls-casinos-to-close
