Rank Group Chief Executive John O’Reilly remains adamant that the group is paying its “fair share” as speculation continues to intensify over gambling tax increases in the UK.
It is widely believed that the gambling tax in the UK will increase next month when Chancellor Rachel Reeves announces November’s Budget, although it is unclear how much it will increase across different verticals.
O’Reilly has stated that Rank has been in conversation with the Treasury about the potential tax implications an increase could have on its operations.
The Chief Executive said: “Speculation regarding tax changes in the upcoming budget is, inevitably, hanging over the business. We are engaged with the Treasury on the implications of tax changes on the viability of our venues, employment levels, future investment and the customer.
“Last year the group generated £44.6m in profit after tax, having paid HMRC and local authorities £188m in taxes. The Rank Group, with its strong UK focus, is certainly paying its fair share.”
Many other operators, such as Entain and evoke, have already expressed their opinion on the potential tax rise, noting they would reevaluate their investment strategy in the market if changes to the gambling tax were to occur.
UK drives digital growth
O’Reilly’s gambling tax comments come alongside Rank reporting growth across all areas of its business in its first quarter of 2025/26 trading update (1 July to 30 September), with the Chief Executive expressing his confidence for the financial year ahead.
The group’s like-for-like net gaming revenue rose by 9% year-over-year to £210.2m. Digital NGR increased by 13% to £61.6m, while venues NGR was up 7% to £148.6m.
O’Reilly noted: “We have started the year strongly and are confident of delivering Group like-for-like operating profit in line with expectations, notwithstanding the significant cost increases we have incurred in employer national insurance contributions, the national living wage and the new statutory levy.”
Rank’s UK operations supported its digital growth in Q1, rising by 15% YoY: Grosvenor increased by 31%, while Mecca rose by 9%.
However, Spain’s operations declined by 1% YoY due to previously reported platform capacity issues, but the operator says these are being addressed and a new bingo platform is set to launch, with growth expected in Q2.
Gaming machine uptick
Looking at land-based venues, Mecca venues NGR rose by 5% YoY to £35.5m, with spend per visit being up by 6%, but customer visits down by 1%. Enracha venues NGR improved by 5% to £10.4m.
Grosvenor NGR improved by 8% YoY to £102.7m, with visits and spend per visit rising by 5% and 3% respectively.
Performance outside of London grew by 10%, but its UK capital operations only rose by 4% due to a quieter summer being offset by Victoria Casino’s performance increasing following the completion of a £15m refurbishment in July.
Per product, electronic table gaming revenue benefited from terminal upgrades, rising by 11% YoY, while table gaming revenue increased by 3%.
Gaming machine revenue grew by 12% following the installation of additional B1 gaming machines across its estate in late August, with 471 machines now installed across 18 casinos.
“We are pleased to be rolling out additional gaming machines in our Grosvenor venues; we are on track with our installation programme and now expect a total of 850 incremental machines to be added to our estate before the end of H1 2025/26,” said O’Reilly.
Rank Group will host its Capital Markets Event focused on its Grosvenor business on 22 October at the Victoria Casino, before announcing its interim results for the six months ending 31 December 2025 on 29 January 2026.
