Rank forced to make job cuts due to increase in Remote Gaming Duty

An additional 850 slots helped gaming machine performance improve by 12 per cent in Q4

Rank Group, owner of the UK’s Grosvenor Casino and Mecca Bingo brands, has been forced to make ‘headcount reductions’ as it looks to minimise costs due to the Chancellor’s move to increase Remote Gaming Duty (RGD) rate from 21 per cent to 40 per cent in the last Autumn Budget. The increases came into force in April.

Richard Harris, who was recently confirmed as Rank’s permanent CEO, said: “We have worked hard to mitigate the impact of the RGD increase, whilst protecting digital revenues and optimising performance in our land-based businesses. Our UK digital business has performed well since taxes increased in April and we are continuing to see growth in our Grosvenor business as the machine performance optimisation work progresses. Gaming machine revenue growth remains a significant opportunity for the Group.”

“The decision to protect performance marketing and customer incentives, whilst making significant savings in above the line marketing spend, supplier costs and headcount reductions, has helped to secure strong revenue performance and robust profit delivery in Q4.”

“Our expected profit outturn for the year reflects the progress we have made in executing our plan for growth, despite the significant cost and taxation headwinds that we have incurred during the year,” he added.

Grosvenor casino remained the company’s best-performing segment, generating fourth quarter revenue of £98.3m, up three per cent, and full year revenue of £397.3m, up five per cent. 

Rank said it achieved the growth ‘despite the disruption to international travel related to the ongoing conflict in the Middle East.’

“Most notably, gaming machine performance improved 12 per cent in Q4, a result of the initial optimisation work undertaken. Maximising the performance of the gaming machine estate, which increased by 850 terminals, up 60 per cent in H1, remains a significant growth opportunity.

Mecca bingo venues contributed fourth-quarter revenue of £35.4m, up four per cent and full-year revenue of £143m, also up four per cent. The Spanish Enracha venues segment generated Q4 revenue of £11.3m, up six per cent, with full-year revenue of £45.3m, up seven per cent.

Rank said: “Mecca venues and Enracha performance has continued in line with expectations.”

Harris added: “The Group remains focused on our ambition to deliver at least £100m operating profit in the medium term, evolving Rank’s longer-term strategy and maximising shareholder value.”

Rank also revealed that it has proposed to pay £5m instead of a financial penalty to the Gambling Commission of Great Britain for historical compliance failings, between November 2024 and May 202.

“We have engaged constructively with the Gambling Commission to address historical compliance issues dating back to a prior year and remedial actions were substantially implemented during the first half of 2025/26,” Harris added.