In a recent statement regarding the operator's financial results for FY2025/26, Richard Harris, the CEO of Rank Group, criticized recent actions that may adversely affect the UK retail casino industry. He pointed to a report from the Social Market Foundation, which advocates for increased taxes on ‘higher-risk Category B electronic gaming machines’. According to Harris, these anti-gambling activists have significantly influenced perceptions in the UK’s regulated gambling sector.
The casino sector has already faced a significant rise in remote gaming duty this year, from 21% to 40%. Additionally, Prime Minister Andy Burnham is aiming to empower local councils with greater authority to limit Adult Gaming Centers.
Harris characterized betting shops as “dodgy businesses”, likening them to the influx of vape shops appearing across the UK’s high streets. He cautioned that elevated taxes on gambling activities could harm the viability of land-based 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 excellent hospitality experiences to millions of customers. Rank paid over £225 million in taxes and duties last year,” Harris stated. “Increased taxes for establishments like ours, which operate under stringent supervision and tight margins, will inevitably lead to lower tax revenues. Beloved bingo halls and casinos may be forced to shut down, adversely affecting local communities. The government has supported bingo clubs like ours in recent times, and any increase in taxes would materially threaten our commercial viability.”
Rank Group reported a 5% growth in net gaming revenue (NGR) for the year ending June 2026, reaching £835 million ($1.13 billion), largely driven by a strong performance in its digital division. The company also noted a 15% rise in underlying EBITDA, totaling £138.3 million, with underlying operating profit up 21% to £78.6 million.
However, its reported operating profit saw a decline of 7%, dropping from £60.1 million to £55.7 million. Tax hikes significantly impacted Rank's profits, leading to a 23% drop in profit after tax, which fell to £29.9 million. The figures provided by Rank were largely on a like-for-like basis, excluding the effects of new venue openings and closures, FX movements, and operations in new markets that had not been operational for over a year.
The company’s underlying like-for-like NGR increased by 6%, reaching £834.1 million, while like-for-like operating profit saw a 20% increase from £66.7 million to £79.9 million. At the end of the year, Rank reported a net free cash flow of £25.5 million, a decrease from the previous year’s £27.7 million, although net debt improved from £154.7 million to £147.2 million.
In terms of digital performance, Rank’s underlying like-for-like NGR increased by 8%, totaling £248.5 million, which exceeded growth rates from its physical venues. During Q4, digital revenue grew by 12%, which Rank deemed “particularly encouraging” and contributed positively to their annual profit performance.
For its retail venues, the average weekly NGR from Grosvenor casinos rose by 5% year-on-year to £7.6 million, driven by increased customer visits and spending. This growth was attributed to the introduction of 850 new machines across 37 casinos, although performance in table gaming was negatively affected by ongoing Middle Eastern conflicts. Meanwhile, the NGR from Rank’s Mecca venues increased by 4% on a like-for-like basis, despite the closure of nine venues deemed commercially unviable this year.
Rank noted a positive trading momentum at the start of its new financial year, reporting an 8% rise in group NGR over the first six weeks, with digital revenue increasing by 10% and Grosvenor gaming machine revenue climbing 15%. Looking forward, Rank intends to achieve over £100 million in underlying operating profit “in the medium term,” although the firm acknowledged that digital profitability was expected to decline in FY‘26/27 due to the substantial rise in remote gaming duty.
Regarding its land-based operations, Rank emphasized the importance of maintaining the current rate for machines games duty, which is presently set at 20%. “An increase in this rate would further threaten venue viability across both Grosvenor and Mecca and lead to reduced tax revenues within 12 months,” the company cautioned.
In personnel news, Richard Harris was appointed as the permanent CEO in July, having served in an interim capacity since John O’Reilly resigned in January following a nearly decade-long tenure. Additionally, Karen Whitworth announced her departure from the board, and Lucinda Charles-Jones will also step down after the AGM on October 8. Non-executive director Katie McAlister will temporarily take over Charles-Jones’ role as chairman of the remuneration committee following the AGM. Rank is also seeking to appoint a new senior independent director to replace Whitworth in the near future.
