Rank Revenue Rises, but CEO Warns UK Tax Hike May Force Casino Closures

Rank Group (LSE: RNK) delivered a 5% year-on-year rise in first-quarter net gaming revenue to £216.1 million, though the operator’s chief executive cautioned that proposed UK tax hikes could trigger venue closures and job cuts.

The operator of the Grosvenor Casinos and Mecca Bingo brands recorded 6% like-for-like revenue growth across both its digital division and its Grosvenor venues for the quarter ending September 30.

Rank described the period as a “strong start” to the new financial year and reiterated confidence in delivering full-year operating profit in line with market expectations.

CEO Richard Harris welcomed the top-line performance but warned that impending fiscal policy poses a severe threat to land-based operations.

“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,” Harris said.

“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.”

Harris’ warning mirrors similar comments from Entain CEO Stella David, who last month warned that an increase in Machine Games Duty would make it “harder to sustain shops, jobs and investment in local communities.”

Grosvenor Revenues Up Despite Venue Closures

Rank’s Grosvenor casino business generated £108.1 million ($145 million) in like-for-like NGR for the period, an increase of 6% year-on-year.

Gaming machines were the standout performer with revenue rising 14%, while table gaming revenue increased 3% and electronic gaming grew 5%. A modest 1% uptick in customer visits meant growth was predominantly driven by a 5% increase in average spend per head.

Despite the positive revenue metrics, Rank closed three Grosvenor venues during the quarter—in Swansea, Reading Central, and Sunderland—after concluding they were no longer economically viable over the medium term.

Meanwhile, Mecca Bingo venues reported flat revenue of £32.2 million ($43 million). A 3% decline in customer visits—which Rank attributed to unusually warm weather across the UK during the period—was fully offset by a 3% increase in spending per visit.

Internationally, the company’s Spanish Enracha business performed strongly, reporting 7% revenue growth to £10.9 million ($14.6 million), propelled by an 11% surge in electronic gaming revenue.

Digital Growth Holds Firm

Rank’s digital division delivered £64.9 million ($87 million) in like-for-like NGR, representing a 6% year-on-year increase.

UK online revenue grew 6% despite the higher gambling tax regime introduced in April 2026, with the Mecca online brand proving a key driver after posting 7% growth. International digital revenue climbed 4%.

Harris highlighted the resilience of online operations alongside the momentum in physical venues.

“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,” he said.

Earlier this month, Rank Group reached a £5 million ($6.6 million) regulatory settlement with the United Kingdom Gambling Commission after an investigation had found anti-money laundering and social responsibility failures across three of its land-based casinos. 

Rank will publish its H1 FY2027 results on January 28, 2027.