The owner of Mecca Bingo and Grosvenor Casinos has revealed it faces a financial blow of nearly £50 million following tax changes announced in the recent Budget by Chancellor Rachel Reeves.
The Rank Group, a constituent of the FTSE 250, stated that the government's decision to significantly increase the Remote Gaming Duty would be the primary driver of this cost. While the abolition of Bingo Duty offers a minor reprieve, the overall impact on the company's digital operations is set to be severe.
A Significant Financial Blow
In an official statement released to the London Stock Exchange, Rank Group detailed the precise financial implications. The increase in Remote Gaming Duty from 21 per cent to a substantial 40 per cent is projected to cost the company approximately £46 million.
Chief Executive John O'Reilly described the move as a "very significant blow to the regulated betting and gaming industry in the UK." He confirmed that the group would be "reviewing various mitigating actions for the UK digital business" in response to the new fiscal landscape.
Mixed News for Land-Based and Digital Sectors
There was a silver lining for the company's physical venues. The Chancellor's decision to abolish Bingo Duty was welcomed by the group, which expects this measure to save it around £6 million. This move is seen as supportive of jobs and investment in the land-based bingo and casino sector.
However, this positive development is overwhelmingly offset by the digital tax hike. For the year ending 30 June 2025, Rank reported a profit after tax of £44.6 million and paid £188 million in UK taxes. The new duty alone will add a further £40 million to its tax burden.
Additional Pressures from Wage Increases
Beyond the gaming-specific taxes, the company also highlighted the financial impact of the rise in the National Minimum Wage. The 4.1 per cent increase to £12.71 per hour is expected to cost Rank Group an additional £5.5 million.
This combination of higher operational costs and a dramatically increased tax liability on its digital earnings presents a considerable challenge. The group is due to publish its half-year results for the six months to 31 December 2025 on 29 January 2026, which will be closely watched for early signs of the Budget's impact.
