Rank Group Highlights Risks from Potential Machine Games Duty Hikes
Lars Carter · Aug 27, 2026
Rank Group Highlights Risks from Potential Machine Games Duty Hikes
Rank Group, the operator behind Grosvenor Casinos and Mecca Bingo, has issued a direct warning that any further rises in machine games duty could trigger widespread venue closures across the UK, and those closures would cut overall tax revenue while affecting local employment and community services. The statement comes in the wake of the remote gaming duty increase from 21% to 40% that took effect in April 2026, together with scheduled adjustments to general betting duty planned for 2027, and it draws on the company’s latest full-year results showing gaming revenue of £835 million after 5% growth yet pre-tax profit down 15% at £39 million.
Company Position on Duty Changes
Executives at Rank Group have pointed out that machine games duty already represents a significant cost within their land-based operations, and they argue that additional upward pressure on the rate would make many sites unviable because player volumes and margins cannot absorb extra taxation without reducing opening hours or closing sites outright. Observers note that the company’s portfolio includes dozens of high-street bingo clubs and casino venues that rely on a mix of table games, slots and electronic roulette, so any duty increase would hit multiple revenue streams simultaneously rather than affecting one product line in isolation.
Recent Financial Performance
The figures released for the year to June show gaming revenue rising to £835 million, which reflects continued customer demand across both digital and physical channels, while the 15% decline in pre-tax profit to £39 million illustrates the squeeze created by higher operating costs and the new remote gaming duty regime. Data from the company indicates that the duty change implemented in April 2026 has already begun to influence profitability in the online segment, and management has signalled that further land-based tax adjustments would compound the pressure rather than allow recovery time for the business to adjust.
Potential Impact on Venues and Communities
Rank Group has stated that forced closures would reduce tax receipts because shuttered sites would stop contributing both duty payments and business rates, while local economies would lose jobs and the social spaces that bingo halls and casinos provide in many towns and cities. Those who have followed the sector for years know that venue closures often lead to knock-on effects such as reduced footfall for neighbouring retailers and fewer sponsorship opportunities for community groups that previously received support from gambling operators.
Broader Context of Tax Reforms
The remote gaming duty rise to 40% in April 2026 formed part of a wider package of measures aimed at aligning tax treatment across different gambling channels, and the forthcoming changes to general betting duty in 2027 are expected to extend similar adjustments to other products. Rank Group’s warning therefore sits within an ongoing policy discussion in which government departments weigh the need for revenue against the sustainability of licensed operators that employ thousands of people and operate under strict regulatory oversight.
Industry Response and Data Points
Trade bodies representing land-based gambling have echoed concerns that cumulative tax increases could accelerate consolidation or exit from the market, and they have referenced modelling which suggests that doubling machine games duty on £2-a-spin slot machines would push many venues below break-even thresholds. According to the Independent report covering Rank Group’s statement, the company has emphasised that its current results already reflect the combined effects of inflation, energy costs and the recent duty uplift, leaving limited headroom for further fiscal changes.
Conclusion
The position outlined by Rank Group makes clear that continued increases in machine games duty carry consequences that extend beyond individual operators to include lower tax yields and reduced community infrastructure. With the April 2026 remote gaming duty adjustment now in place and 2027 changes on the horizon, the coming months will show whether policymakers adjust the planned trajectory or maintain the current course despite the warnings issued by major venue owners.