Rank Group Q1 revenue up 5% to £216.1m as CEO warns on Machine Games Duty rise

Rank Group's like-for-like net gaming revenue climbed 5% to £216.1m in the opening quarter of the 2026/27 financial year, which covered the three months ended 30 September 2026. The casino and bingo operator also cautioned that a higher level of the UK's Machine Games Duty (MGD) could result in venues shutting and jobs being lost.

For operators and affiliates with UK exposure, the update puts a number on how exposed a venue-based business is to a duty change ahead of the autumn Budget.

What happened

Rank said revenue grew in both its digital and venue operations. Digital revenue rose 6% and venue revenue rose 5% on a like-for-like basis, according to the report by Yogonet.

By division:

• Digital: like-for-like net gaming revenue rose 6% to £64.9m. UK digital also rose 6%, helped in part by the Mecca online brand, while international digital rose 4%. Rank said customer metrics in its UK digital business held firm, even after the tax rises brought in during April 2026.
• Grosvenor Casinos: revenue rose 6% to £108.1m. Visits rose 1% and spend per visit rose 5%. Gaming machine revenue grew 14%, table gaming 3% and electronic gaming 5%.
• Mecca bingo: revenue was flat at £32.2m. A 3% rise in spend per visit offset a 3% fall in attendance, which Rank partly linked to prolonged hot weather across the UK.
• Enracha (Spain): revenue rose 7% to £10.9m, with electronic gaming revenue up 11%.

Rank shut three Grosvenor sites during the quarter: Swansea, Reading Central and Sunderland. The company described them as "no longer economically viable in the medium term".

Provided the current UK industry tax regime is unchanged, Rank anticipates full-year like-for-like operating profit in line with market expectations.

Chief Executive Richard Harris said a possible increase in MGD, including a potential doubling of the duty in the autumn Budget, could raise costs and undermine the viability of its venues. He said an increase would "lead to venue closures and job losses", and added that HM Treasury had recognised these economic arguments the previous year. Harris argued that, so long as the policy backdrop stays favourable, casinos and bingo clubs could contribute to the government's growth agenda.

Even after partial mitigation, an MGD rise could cost Rank roughly £35 million a year, according to an estimate from Deutsche Bank. It put that at about 44% of Rank's forecast 2028 EBIT and 17% of near-term EBITDA. The bank kept its "hold" rating, having downgraded the stock from "buy" in January 2026.

The results follow Rank's earlier guidance for underlying operating profit of at least £76 million for the year ended June 2026. Across the year to June 2026, like-for-like net gaming revenue grew 6% to about £834.1m, while revenue in the fourth quarter was up 6% compared with a year earlier at £208.9m.

Why it matters

Operators with machine-heavy UK estates will need to check how a higher MGD would affect venue-level margins, since Rank's management links closures and job losses directly to the duty. Rank has already closed three Grosvenor sites, and its guidance depends on the tax regime staying as it is.

The Deutsche Bank estimate gives the sector a reference point for the scale of exposure. Analysts and investors are likely to apply similar sensitivity tests to other UK operators with land-based machine revenue.

For affiliates and digital operators, the digital figures show UK online revenue still growing after the April 2026 tax increases, according to Rank. Any further change in the UK tax regime could affect budgets for marketing and acquisition, so UK-facing partners may want to ask operators how they are planning for the Budget.

What's next

Rank is scheduled to publish interim results for the six months ending 31 December 2026 on 28 January 2027. The report points to the upcoming autumn Budget as the risk point for an MGD rise but gives no date for it.