In a recent update regarding the financial results for fiscal year 2025/26, Rank Group CEO Richard Harris expressed concern over factors affecting the UK retail casino sector. He highlighted the impact of an increasing remote gaming duty and recent proposals from anti-gambling advocates, notably mentioning a Social Market Foundation report that calls for higher taxes on so-called high-risk Category B electronic gaming machines. Harris stated that these campaigners have "cast clouds" over the legitimate gambling industry.
This year, the sector has faced a steep hike in remote gaming duty, which has risen from 21% to 40%. Additionally, Prime Minister Andy Burnham recently proposed that local councils be given greater authority to regulate Adult Gaming Centers.
Harris referred to betting shops dismissively as "dodgy businesses," drawing parallels with the proliferation of vape shops on Britain's high streets. He warned that significant tax increases could backfire by jeopardizing the sustainability of land-based 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, deliver great hospitality experiences to millions of customers, and Rank paid over £225 million in taxes and duties last year," Harris emphasized. He cautioned that increased taxes for establishments like theirs, which operate under strict supervision and on narrow profit margins, could lead to closures of beloved bingo halls and casinos, negatively impacting customers in surrounding communities. The government has previously supported bingo clubs, and any tax hike would seriously affect their commercial viability.
For the full fiscal year, spanning from June 2025 to June 2026, Rank Group reported a 5% growth in net gaming revenue (NGR), totaling £835 million ($1.13 billion), propelled by robust performance in its digital segment. Underlying EBITDA increased by 15% year-over-year to £138.3 million, while the underlying operating profit rose 21% to £78.6 million.
Despite these gains, the overall reported operating profit dropped by 7%, from £60.1 million to £55.7 million, and profit after tax decreased significantly by 23% to £29.9 million, influenced by various tax increases. Many of the figures presented were adjusted to reflect a like-for-like basis, excluding impacts from new openings, closures, currency fluctuations, discontinued operations, and new markets lacking 12 months of operation.
The group’s like-for-like NGR grew by 6% to £834.1 million, and its underlying like-for-like operating profit saw a 20% increase from £66.7 million to £79.9 million. Rank ended the year with a net free cash flow of £25.5 million, down from £27.7 million in the previous year, yet managed to reduce its net debt from £154.7 million to £147.2 million.
The digital segment performed particularly well, with like-for-like NGR climbing 8% to £248.5 million, surpassing performance from physical venues. In the fourth quarter, digital like-for-like revenue increased by 12%, which Rank deemed "particularly encouraging" for sustaining profits through the financial year.
Regarding retail venues, the average weekly NGR from Rank’s Grosvenor casinos rose by 5% year-on-year to £7.6 million, along with increased customer visits and spending per visit. Rank attributed this growth to the deployment of 850 machines across 37 casinos during the year, although it noted that table gaming performance faced challenges due to the ongoing conflict in the Middle East.
The NGR from Rank’s Mecca venues experienced a 4% increase on a like-for-like basis, even as the company closed nine underperforming venues during the year. Rank indicated it has seen "strong trading momentum" in the first six weeks of its new financial year, with overall NGR rising by 8%. Digital revenues are up 10%, while Grosvenor gaming machine revenue increased by 15%.
Looking forward, Rank reiterated a goal of achieving over £100 million in underlying operating profit in the medium term. However, the company acknowledged that profitability in the digital sector would likely decline in FY 2026/27 due to a near doubling of the remote gaming duty. Concerning land-based operations, Rank emphasized the importance of maintaining the current rate on machines games duty at 20%, warning that any increase could further harm venue viability, particularly for Grosvenor and Mecca, and lead to decreased tax receipts within a year.
In terms of leadership changes at Rank, Richard Harris, who was appointed permanently as CEO in July after serving in an interim capacity, officially took over from John O’Reilly, who departed in January after nearly a decade. The company also announced that Karen Whitworth would leave the board, along with Lucinda Charles-Jones after the upcoming AGM on October 8. Katina McAlister will temporarily assume the role of remuneration committee chair following the AGM, and Rank plans to appoint a new senior independent director to fill Whitworth’s vacancy.
