Having closed three casinos, Rank warns of more if Machine Games Duty increases

Overall revenues for Rank grew five per cent to £216.1m, with online gaming up six per cent and land-based up five per cent

Having been forced to close three casinos in the last quarter, British operator Rank has warned that the proposed increase in Machine Games Duty will lead to more closures in the future.

Richard Harris, Chief Executive of Rank, operator of the Mecca bingo and Grosvenor Casino brands, said: “Speculation regarding the upcoming Budget continues to weigh heavily on investor sentiment, but our message has been clear: any increase to Machine Games Duty will increase costs, reduce venue viability, lead to venue closures and job losses, reduce tax receipts and halt investment. HM Treasury recognised these economic arguments last year and, with the right conditions, we believe our casinos and bingo clubs can play an important role in the Government’s growth agenda.”

During the quarter Rank closed three venues in Swansea, Reading Central and Sunderland, which were no longer economically viable in the medium term.

At a product level, gaming machines revenue grew 14 per cent, underlining our confidence in further improvement as we optimise the performance of the machine estate. Table gaming revenue grew three per cent and electronic gaming grew five per cent. The prolonged period of hot weather in the UK was a significant contributor to the softness in customer visits to Mecca venues. Enracha venues continued to perform well with Q1 LFL NGR growth of seven per cent, driven by 11 per cent growth in electronic gaming. Mecca venues LFL NGR growth was flat in the period. Customer visits were down three per cent on prior year, with spend per visit up three per cent.

During the first quarter, overall revenues for Rank grew five per cent to £216.1m, with online gaming up six per cent and land-based up five per cent.

Digital LFL NGR growth of six per cent was driven by six per cent growth in the UK business, reflecting strong performance from our core customer base, notably the Mecca brand online which grew seven per cent. The UK business continues to demonstrate resilient customer metrics despite the higher tax regime introduced in April 2026 and reduced above the-line marketing spend.

Harris said: “Our focus on the customer proposition and overall marketing spend balance remains a priority as the wider digital landscape continues to reset. International Digital NGR grew four per cent. Grosvenor venues LFL NGR grew six per cent, with a 1% increase in visits and a five per cent increase in spend per visit.

The Group has made a strong start to the new financial year and, based on the current industry tax regime in the UK, is confident of delivering Group LFL operating profit in line with market expectations for the current year.

Harris: “I am pleased with the revenue growth we have seen in the first quarter, particularly the progress we continue to make in terms of gaming machine performance in
Grosvenor and the resilience of our UK digital business.