Rank Group Revenue Rises but CEO Warns Tax Hike Could Force Casino Closures

Rank Group (LSE: RNK) reported a 5% increase in net gaming revenue (NGR) to £216.1 million ($290 million) for Q1 FY2027, but the company’s CEO warned that further tax increases would lead to venue closures and job losses at the operator. Rank Group, which operators Grosvenor Casinos, has warned of casino closures if UK taxes increase. (Image: Rank Group) The company, which operates the Grosvenor Casinos and Mecca Bingo brands, reported 6% revenue growth for both its digital division and its Grosvenor venues during the quarter ending September 30. Rank said it had made a “strong start” to the new financial year, and said it was confident of delivering operating profit “in line with market expectations for the current year.” CEO Richard Harris welcomed the results but warned that further tax increases could threaten the viability of the company’s land-based operations. “Speculation regarding the upcoming Budget continues to weigh heavily on investor sentiment, but our message has been clear: any increase to Machine Games Duty will increase costs, reduce venue viability, lead to venue closures and job losses, reduce tax receipts and halt investment,” Harris said. “HM Treasury recognised these economic arguments last year and, with the right conditions, we believe our casinos and bingo clubs can play an important role in the government’s growth agenda.” Harris’ warning mirrors similar comments from Entain CEO Stella David, who last month warned that an increase in Machine Games Duty would make it “harder to sustain shops, jobs and investment in local communities.” Grosvenor Revenues Up Despite Closures Rank’s Grosvenor casino business generated £108.1 million ($145 million) in like-for-like NGR for the period, an increase of 6% year-on-year. Gaming machines were the standout performer, with revenue rising 14%. Table gaming revenue increased 3%, while electronic gaming grew 5%. Customer visits increased just 1%, meaning the average spend per customer, which rose 5%, was behind the uptick. Despite this, Rank closed three Grosvenor casinos during the quarter, in Swansea, Reading Central, and Sunderland. The company said the venues were no longer economically viable over the medium term. Meanwhile, the company’s Mecca Bingo venues reported flat revenue of £32.2 million ($43 million). Customer visits declined 3%, which was offset by a 3% increase in spending per visit. Rank attributed the reduction in customer visits to unusually hot weather across the UK during the reporting period. Its Spanish Enracha business performed more strongly, reporting 7% revenue growth to £10.9 million ($14.6 million), supported by an 11% increase in electronic gaming revenue. Digital Growth Holds Up Despite Higher Taxes Rank’s digital division generated £64.9 million ($87 million) in like-for-like NGR, up 6% year-on-year. Its UK online business also grew 6%, despite the higher gambling tax regime introduced in April 2026. The Mecca online brand was a particularly strong performer, recording 7% growth. International digital revenue increased 4%. Harris highlighted the resilience of the company’s online operations alongside the improvement in gaming machine performance. “I am pleased with the revenue growth we have seen in the first quarter, particularly the progress we continue to make in terms of gaming machine performance in Grosvenor and the resilience of our UK digital business,” he said. Earlier this month, Rank Group reached a £5 million ($6.6 million) regulatory settlement with the United Kingdom Gambling Commission after an investigation had found anti-money laundering and social responsibility failures across three of its land-based casinos. Rank will publish its H1 FY2027 results on January 28, 2027. The post Rank Group Revenue Rises but CEO Warns Tax Hike Could Force Casino Closures appeared first on Casino.org.