Rank Group delivered 5% NGR growth and 21% underlying operating profit growth in FY26, but CEO Richard Harris warned that anti-gambling campaigners and tax hikes are casting “clouds” over the UK casino sector’s future.
Rank Group posted £835M NGR and £78.6M underlying operating profit in FY26, but profit after tax fell 23% due to tax pressures. CEO Richard Harris warned that further tax hikes on Category B machines would force venue closures and reduce tax receipts.
- Rank’s FY26 Financial Performance
- Digital Growth vs. Retail Pressure
- The Tax and Political Threat
Rank Group grew underlying operating profit 21% to £78.6 million in FY2025/26, but the headline numbers hide a tax squeeze that is only getting tighter. NGR rose 5% to £835 million, driven by an 8% digital surge. Underlying EBITDA climbed 15% to £138.3 million. However, reported operating profit fell 7% to £55.7 million, and profit after tax plummeted 23% to £29.9 million. The culprit is the UK’s tax environment. Remote Gaming Duty Rank Group doubled from 21% to 40% in April. New Prime Minister Andy Burnham has called betting shops “dodgy businesses” and wants councils to have more power to restrict Adult Gaming Centres. A Social Market Foundation report is pushing for higher duties on Category B electronic gaming machines. Richard Harris, Rank’s newly permanent CEO, fired back Rank Group in the results statement. “Tax proposals from anti-gambling campaigners continue to cast clouds over a regulated industry that is proud to support jobs across the country,” he said. Rank paid over £225 million in taxes and duties last year. Harris warned that further hikes would “swiftly lead to lower tax receipts as much-loved bingo halls and casinos will be forced to close.” For operators across Europe, the UK is becoming a case study in how tax policy can outrun revenue growth.
Rank’s FY26 Financial Performance
The numbers tell two stories. On a like-for-like basis — stripping out venue openings, closures, FX, and new markets — NGR rose 6% to £834.1 million and operating profit jumped 20% to £79.9 million. That is the operational story: cost mitigation and efficiency savings are working. The reported story is uglier. Operating profit fell 7% and profit after tax dropped 23%, dragged down by the RGD hike and other tax increases. Net free cash flow slipped to £25.5 million from £27.7 million. Net debt improved marginally to £147.2 million from £154.7 million. Rank is targeting over £100 million in Rank Group underlying operating profit “in the medium term.” The first six weeks of the new financial year look promising — group NGR is up 8%, digital up 10%, and Grosvenor gaming machine revenue up 15%. However, the company conceded that digital profitability will dip in FY26/27 because of the near-doubling in Remote Gaming Duty. The tax headwind is not going away.
Digital Growth vs. Retail Pressure
Digital is carrying Rank. Underlying like-for-like digital NGR surged 8% to £248.5 million, with Q4 alone up 12%. That outpaced the venues business and secured “robust profit delivery” for the year. The retail story is mixed. Grosvenor casinos averaged £7.6 million in weekly NGR, up 5% year-on-year. Customer visits and spend per visit both rose, helped by 850 new machines rolled out across 37 casinos. However, table gaming was “hampered by the conflict in the Rank Group Middle East” — a reference to the impact of regional instability on high-rolling international players. Mecca bingo venues grew 4% on a like-for-like basis, but nine commercially unviable sites closed. The new financial year has started strong: group NGR up 8%, digital up 10%, and Grosvenor machine revenue up 15%. The question is whether digital growth can offset Rank Group retail headwinds if machine games duty rises above Rank Group its current 20% rate. Rank says maintaining that rate is “critical.” Any increase would “further impact venue viability across both Grosvenor and Mecca and will lead to a reduction in tax receipts within 12 months.”
The Tax and Political Threat
The political environment has turned hostile. The RGD hike to 40% already bit hard. Now the Social Market Foundation wants higher duties on Category B electronic gaming machines — the backbone of Rank’s Grosvenor and Mecca venues. Andy Burnham, the new Prime Minister, has described betting shops as “dodgy businesses” and compared them to vape shops on the high street. He wants councils to have more power to restrict Adult Gaming Centres. Harris pushed back hard. “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,” he said. The argument is straightforward: Rank paid over £225 million in taxes and duties last year. Squeeze the margin further, and venues close. Closed venues generate zero tax. The government supported bingo clubs during the pandemic. Harris is asking why it would reverse that support now. Board changes add another layer of uncertainty. Harris became permanent CEO in July after serving as interim since January, when John O’Reilly left after nearly a decade. Karen Whitworth is stepping down from the board, and Lucinda Charles-Jones will follow after the AGM on October 8. Non-executive director Katie McAlister will take over as remuneration committee chair on an interim basis. A new senior Rank Group independent director will be appointed “in due course.” For players in regulated markets, Rank’s results are a reminder that strong operational performance can be undone by policy shifts faster than any competitive threat.
Frequently Asked Questions
What were Rank Group’s FY26 financial results?
Rank Group posted £835 million in NGR (+5%) and £78.6 million in underlying operating profit (+21%). However, reported Rank Group operating profit fell 7% to £55.7 million and profit after tax dropped 23% to £29.9 million due to tax increases.
How did Rank’s digital business perform in FY26?
Rank’s digital segment delivered underlying like-for-like NGR of £248.5 million, up 8%, with Q4 growing 12%. Digital revenue is up 10% in the first six weeks of the new financial year, though profitability will dip due to the RGD increase.
What tax threats is Rank Group facing?
Rank faces the doubled Remote Gaming Duty (21% to 40%), potential hikes on Category B machine games duty, and Prime Minister Andy Burnham’s push for council powers to restrict Adult Gaming Centres. Rank paid over £225 million in taxes last year.
Why did Rank’s profit after tax fall 23%?
Despite 21% growth in underlying operating profit, Rank’s reported profit after tax dropped 23% to £29.9 million due to the impact of various tax increases, particularly the near-doubling of Remote Gaming Duty from 21% to 40% in April 2026.
What is Rank Group’s medium-term profit target?
Rank reiterated its ambition to deliver over £100 million in underlying operating profit in the medium term. The company is targeting cost mitigation and efficiency savings to offset tax and regulatory headwinds.
Who is Rank Group’s new CEO?
Richard Harris was appointed permanent CEO in July 2026 after serving as interim since January, when John O’Reilly stepped down after nearly 10 years. Harris previously warned that anti-gambling campaigners are casting “clouds” over the regulated sector.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
