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Tax proposals from anti-gambling campaigners continue to cast clouds over industry
Rank Group’s revenue has increased by six per cent to £834.1m for the year to June 30, with all its businesses seeing growth for a fifth consecutive year, reflecting the return on capital investments and strong growth in gaming machine performance across the group.
Underlying operating profit increased 21 per cent to £78.6m, with an underlying operating margin of 9.4 per cent, up from 8.1 per cent in the prior year, driven by operational leverage.
Grosvenor Casinos generated revenues of £397.3m, up five per cent, with profit increasing 11 per cent to £35.5m. Gaming machine revenue increased by 11 per cent, with average revenue per week for Grosvenor coming in at £7.6m, up five per cent. Attendance and spend per visit were both up.
Rank said: “The rollout of 850 machines in 37 casinos i2025/26 and ongoing performance optimisation work has driven growth in the year and presents a significant further opportunity. Performance in table gaming was impacted by the conflict in the Middle East in the latter part of the year.”
Despite closing nine commercially unviable Mecca venues during the year, Mecca bingo venues were up four per cent to £143m, with underlying operating profit more than doubling to £8.9m.
Rank said: “Selected investment in gaming machine areas and external signage schemes drove performance.”
Digital revenue grew by eight per cent. Rank said: “In response to the increase in Remote Gaming Duty to 40 per cent from 21 per cent, effective from 1 April 2026, actions were taken to mitigate costs, such as significantly reducing Above The Line marketing and making other efficiencies. The customer proposition was protected, with free bets and incentives maintained, whilst investment in performance marketing increased modestly.”
In Spain, Enracha revenues were up seven per cent with live bingo and gaming machine performances the principal drivers of growth.
Group employee engagement score consistent with last year at 8.2 (2024/25: 8.3) placing
Rank in the top quartile of the consumer industry benchmark.
Richard Harris, Chief Executive of The Rank Group, said: “We have once again successfully delivered good revenue growth and strong underlying profit growth, during a year of significant change.
“Customer feedback continues to guide the propositional improvements that we are making across the business. They continue to respond well to our targeted investments, product improvements, and our approach to delivering high-quality experiences.
“We have taken decisive cost actions across the Group in response to the higher taxation of the UK digital gaming industry. I am particularly pleased that we exited the year with strong momentum in our digital
business, helping to underpin our ambition to deliver at least £100m operating profit in the medium term. There is material growth runway ahead, most obviously for our Grosvenor casino venues where gaming
machines optimisation is an area of sharp focus and significant opportunity.
“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 £225m in taxes and duties last year. 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.
“Across the Group, the efforts and commitment of my colleagues continues to inspire, and I look forward to working with them as we evolve our strategy that is focussed on providing excitement and entertainment to our customers. With this in mind, I am confident we will deliver further improvement in financial outcomes and strong shareholder returns.”
