Rank Group reported a 5% increase in like-for-like net gaming revenue to £216.1 million ($286.5 million) in the first quarter of its 2026/27 financial year, while warning that a potential increase in the UK’s Machine Games Duty (MGD) could lead to venue closures and job losses.
The casino and bingo operator said revenue grew across both its digital and venue operations in the three months ended September 30, 2026. Digital revenue rose 6%, while venue revenue increased 5% on a like-for-like basis.
Rank expects like-for-like operating profit for the full financial year to meet market expectations, provided the current UK industry tax regime remains unchanged.
Chief Executive Richard Harris warned that a potential increase in MGD, including a possible doubling of the duty in the upcoming autumn Budget, could raise costs and undermine the viability of its venues.
“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,” Harris said.
“HM Treasury recognised these economic arguments last year,” he added, arguing that casinos and bingo clubs could support the government’s economic growth agenda if policy conditions remained favourable.
Deutsche Bank has estimated that an MGD increase could cost Rank around £35 million annually, equivalent to approximately 44% of its forecast 2028 earnings before interest and tax (EBIT) and 17% of near-term earnings before interest, tax, depreciation and amortisation (EBITDA), even after partial mitigation. The bank maintained its “hold” rating on Rank after downgrading the operator from “buy” in January 2026.
Rank’s digital division recorded a 6% increase in like-for-like net gaming revenue to £64.9 million. UK digital revenue also grew 6%, driven in part by its Mecca online brand, while international digital revenue rose 4%.
According to the company, its UK digital business maintained resilient customer metrics despite higher taxes introduced in April 2026.
Grosvenor Casinos delivered a 6% increase in like-for-like net gaming revenue to £108.1 million. Customer visits rose 1%, while spending per visit increased 5%.
Gaming machine revenue at Grosvenor surged 14%, while table gaming revenue rose 3% and electronic gaming revenue increased 5%.
However, Rank closed three Grosvenor venues in Swansea, Reading Central and Sunderland during the quarter, saying the locations were “no longer economically viable in the medium term”.
At Mecca bingo halls, like-for-like revenue remained flat at £32.2 million. A 3% increase in spending per visit offset a 3% decline in attendance, which the company partly attributed to prolonged hot weather across the UK.
Rank’s Spanish subsidiary Enracha recorded a 7% increase in like-for-like net gaming revenue to £10.9 million, supported by 11% growth in electronic gaming revenue.
Rank’s latest trading update follows its earlier forecast that underlying operating profit for the financial year ended June 2026 would reach at least £76 million.
For the 12 months to June 2026, like-for-like net gaming revenue increased 6% to approximately £834.1 million. Fourth-quarter revenue rose 6% year on year to £208.9 million.
The company is scheduled to publish its interim financial results for the six months ending December 31, 2026, on January 28, 2027.