Rank Group Warns of Closures If Machine Games Duty Is Increased

Despite enjoying a profitable financial year, the Rank Group has warned that increased taxation in the sector could lead to the inevitable closure of casinos and bingo halls in the UK.

The company, which owns the Grosvenor Casino and Mecca Bingo brands, recorded a 6% increase in its year-on-year net gaming revenue in 2025/26, with underlying operating profit rising by a whopping 21%.

However, Rank Group CEO Richard Harris refuses to be overly bullish… and has warned that a hike in Machine Gaming Duty could yet spell disaster for his firm.

Rank Group Profits

With operating profit soaring by nearly £14 million in the past financial year, you could forgive the Rank Group for outright optimism as to their future.

The company has also predicted that it will break through the £100 million ceiling for underlying profit in 2026/27, but has warned of an ‘inevitable’ reduction in revenue for its online operations after the government rolled out its Remote Gaming Duty hike in April.

Also causing concern is the future of their retail estate, with rumours swirling that Machine Gaming Duty (MGD) could also be increase as the new Prime Minister, Andy Burnham, continues with his anti-gambling crusade.

Commercial Viability

Speaking to Rank Group shareholders in an earnings call, Harris commented: “The government has supported bingo clubs like ours in recent years and any tax increase would have a material impact on commercial viability.

“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.”

Another outcome would be a reduction in the amount of tax paid by Rank if they were forced to close some of their venues; they currently contribute around £225 million to the Treasury each year.

Nine Mecca Bingo venues were closed in 2025/26, with Rank continuing to consider the future of those are financially unviable. Despite the concerns, it was a positive year for both Mecca and Grosvenor Casino:

• Grosvenor Casino net revenue rose 5% to £397 million
• Mecca Bingo net gaming revenue increased 4% to £143 million
• Mecca Bingo underlying profit soared by a massive 107%

The uptick at Mecca Bingo was accounted for by the abolition of bingo duty in the UK, Harris said.

Will Machine Games Duty Be Increased?

As part of the government’s Autumn Budget, first revealed in November, Remote Gaming Duty was increased from 21% to 40%, while General Betting Duty will be hiked to 25% as of April 2027.

The decision by the former Chancellor, Rachel Reeves, has sent shockwaves through the industry, with cost-cutting measures – like betting shop closures – now in full affect.

Reeves froze the tax paid on retail betting and abolished bingo duty, which was evidently a bonus for the Rank Group. But mystery surrounding the future of Machine Games Duty (MGD) abounds.

Although avoiding a hike in last year’s budget, there are fears that MGD could be targeted in the Autumn Budget of the new chancellor, John Healey, which is due to be unveiled in a few months’ time.

The PM’s War on Gambling

The Prime Minister is known to be of an anti-gambling mindset, having previously labelled betting shops as ‘dodgy businesses’ in a poorly-worded social media post.

It’s thought that he will target gambling ventures as part of plans to clean up the UK’s high streets, so you can understand why Rank would be fearful that their venues will get lumped into the same category as Adult Gaming Centres.

Machine Game Duty is paid on takings made from gaming machines, with contributions ranging from 5% to 25% depending on the game’s stake limits. There are suggestions that a blanket MGD of 25% could be introduced in due course.