Rank Group reported a 5% rise in like-for-like net gaming revenue to £216.1m for the first quarter of its 2026/27 financial year, while warning that UK regulators could double Machine Games Duty in the forthcoming Autumn Budget. Chief executive Richard Harris said such a move would increase costs and reduce the viability of venues across the group’s Grosvenor and Mecca estate. The trading update, covering the three months to 30 September 2026, shows an operator still growing but increasingly exposed to UK tax policy.
What happened
Rank Group reported a 5% increase in like-for-like net gaming revenue to £216.1 million in the first quarter of its 2026/27 financial year, while warning that a potential increase in the UK’s Machine Games Duty could lead to venue closures and job losses
.
Revenue growth came from both channels, with digital up 6% and venues up 5% on a like-for-like basis, as digital revenue reached £64.9 million, driven by 6% growth in the UK
.
Grosvenor revenue rose 6% to £108.1 million, with gaming machine revenue up 14%, while visits increased 1% and spending per visit grew 5%
.
Rank closed three Grosvenor venues during the quarter because they were no longer economically viable in the medium term
, with the sites located in Swansea, Reading Central and Sunderland.
At Mecca, venue revenue was flat at £32.2 million, with spending per visit up 3% offsetting a 3% fall in attendance partly due to prolonged hot weather, while Enracha venues in Spain performed more strongly, with revenue up 7% to £10.9 million
.
The Q1 report arrives just under two weeks before the UK government’s Autumn Budget, in which a 20-per-cent rise in Machine Games Duty has been reported to be among the measures under consideration
.
Harris said speculation regarding the upcoming Budget continues to weigh heavily on investor sentiment, adding that 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
.
He has previously suggested that such a hike could lead to Rank closing around a third of its venues
.
Why it matters
The figures illustrate a familiar pattern for UK-facing operators: steady underlying growth offset by an increasingly hostile tax environment.
Rank Group expects like-for-like operating profit for the financial year to meet market expectations only under the current UK industry tax regime
, making the Budget outcome a material swing factor for the business rather than a background risk.
Deutsche Bank has estimated that an MGD increase could cost Rank Group around £35 million annually, equivalent to approximately 44% of its forecast 2028 earnings before interest and tax and 17% of near-term earnings before interest, tax, depreciation and amortisation, even after partial mitigation, and the bank maintained its “hold” rating on Rank after downgrading the operator from “buy” in January 2026
. That scale of exposure explains why Rank’s land-based estate, rather than its growing digital arm, is the focus of its public lobbying.
For affiliates and performance marketers, the divergence between channels is the more interesting signal. Digital net gaming revenue is growing faster than venue revenue and already carries a lower regulatory tax burden relative to the threatened MGD rate. If land-based economics deteriorate further, operators including Rank Group are likely to lean harder on online acquisition, which could increase competition for UK casino and bingo search traffic and shift marketing budgets further toward digital-first brands such as Mecca’s online arm.
The bigger picture
Rank’s UK digital business reported resilient customer metrics despite higher taxes introduced in April 2026
, a reference to the Remote Gaming Duty increase that has already reshaped margins for online-facing UK operators this year. Rank’s warning over Machine Games Duty adds a land-based dimension to a UK tax debate that has so far centred on online operators, and it lands alongside wider industry pushback against the sector’s overall tax burden, including UK bookmakers’ calls for a pause on the General Betting Duty increase.
With the Autumn Budget imminent, Rank’s venue closures in Swansea, Reading Central and Sunderland may prove an early indicator of how UK casino and bingo operators respond if MGD rises as feared, with further rationalisation of the physical estate likely regardless of the final tax outcome.
Sources
- SBC News – Rank Group ends Q1 up 5% on net revenue
- iGaming Business – Rank CEO says MGD rise would ‘reduce viability’ of venues but hails ‘strong start’ to financial year
- iGaming Business – Is the sector presenting the right argument against MGD hike?
- Gambling News – Rank Group Posts Strong Q1 Results, Despite UK Headwinds
- Yogonet – Rank Group quarterly revenue rises 5%, warns higher gaming duty could trigger closures
- Proactive Investors – Rank Group warns higher gaming duty could cost jobs and venues
- InterGame Online – Rank sees ‘important role’ for UK retail gaming as Budget looms
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