In an update regarding its fiscal year results for 2025/26, Rank Group CEO Richard Harris addressed various developments affecting the UK retail casino sector. Specifically, Harris referred to a report by the Social Market Foundation, which proposed an increase in duty on ‘higher-risk Category B electronic gaming machines.’ He expressed concerns that anti-gambling advocates have “cast clouds” over the nation’s regulated gambling industry.
This year alone, the sector contended with a rise in remote gaming duty, increasing from 21% to 40%. Recently appointed Prime Minister Andy Burnham has also recommended granting councils greater authority to impose restrictions on Adult Gaming Centers.
Harris criticized betting shops, likening their untrustworthy reputation to the rising prevalence of vape shops in UK town centers. He warned that increased taxes could have detrimental effects on the sustainability of physical gambling establishments. "Tax proposals from anti-gambling campaigners continue to cast clouds over a regulated industry that is proud to support jobs across the country, delivering exceptional hospitality experiences to millions of customers. Last year, Rank paid over £225 million in taxes and duties," Harris stated.
He went on to caution that tax hikes for establishments like Rank, which operate under stringent supervision and slim profit margins, could lead to decreased tax revenue as beloved bingo halls and casinos might face closure, impacting local communities. Harris noted that the government has previously supported bingo venues like theirs and emphasized that any tax increase would significantly harm their business viability.
Rank Group reported a 5% increase in net gaming revenue (NGR) to £835 million ($1.13 billion) for the full year running from June 2025 to June 2026, with its digital division leading the way. The underlying EBITDA rose 15% year-on-year to £138.3 million, while the underlying operating profit jumped 21% to £78.6 million.
Despite these gains, reported operating profit decreased by 7%, falling from £60.1 million to £55.7 million. The operator's profit after tax saw a significant drop of 23%, down to £29.9 million, largely influenced by various tax increases.
Several figures were provided on a like-for-like basis, which excludes the effects of venue openings, closures, currency fluctuations, discontinued operations, and markets that have not been operational for over a year. The underlying like-for-like NGR increased by 6% to £834.1 million, and the underlying like-for-like operating profit climbed 20%, reaching £79.9 million.
Rank ended the year with a net free cash flow of £25.5 million, a slight dip from £27.7 million the previous year. However, the company’s net debt improved, decreasing from £154.7 million to £147.2 million.
Over the same period, the digital segment recorded an 8% rise in underlying like-for-like NGR to £248.5 million, outpacing growth from its venues. In Q4, digital revenue saw a 12% increase, which Rank characterized as “particularly encouraging” and instrumental in achieving solid profit for the financial year.
For retail venues, the average weekly NGR from Rank’s Grosvenor casinos grew 5% year-on-year to £7.6 million, with an increase in both customer visits and spending per visit. This growth was attributed in part to the deployment of 850 machines across 37 casinos during the year. However, table gaming performance was negatively impacted by ongoing conflict in the Middle East.
NGR from Rank’s Mecca venues also improved by 4% on a like-for-like basis, although the closure of nine unviable venues was noted.
The company reported encouraging trading momentum, particularly in the first six weeks of the new financial year, during which group NGR increased by 8%. Once again, the digital segment led this growth, with a 10% rise in revenues, while Grosvenor gaming machine revenue climbed 15%.
Looking forward, Rank reaffirmed its goal of reaching over £100 million in underlying operating profit in the medium term, though it acknowledged that digital profitability might decrease in FY'26/27 due to the near doubling of remote gaming duty.
Regarding land-based operations, the company underscored the importance of maintaining the current rate of machines games duty at 20%. "Any increase to this rate will further affect venue viability across both Grosvenor and Mecca and will result in decreased tax receipts within a year,” the company stated.
In July, Rank appointed Richard Harris as its new permanent CEO after he served in an interim capacity following John O’Reilly's departure in January, who had led the company for nearly a decade. Also in July, the company announced that Karen Whitworth would step down from the board, and more recently, Lucinda Charles-Jones is set to resign following the AGM on October 8. Katie McAlister will temporarily take on the role of remuneration committee chair after Charles-Jones’s departure, with plans to find Whitworth’s successor as a new senior independent director going forward.
