Listen to this article:The owner of Mecca Bingo has warned that bingo halls could be forced to close if the government increases taxes on gaming machines.
Rank Group chief executive Richard Harris issued the warning following proposals to double Machine Games Duty from 20% to 40%. The change has been suggested as a way of raising as much as £460 million in additional tax from the gambling industry.
The warning is particularly relevant to bingo halls because gaming machines have become an important source of income for venues. At Mecca Bingo, machine revenue increased by 6% during the last financial year and accounted for 42% of the business’s net gaming revenue. Rank Group profit rose 21%, with its casino, bingo and digital businesses all recording growth in a strong set of full-year results.
Therefore, it is not a surprise that Rank Group has criticised the prospect of another gambling tax increase and is arguing that land-based venues already operate on relatively tight margins.
The company paid more than £225 million in taxes and duties during its latest financial year and believes increasing Machine Games Duty could ultimately reduce rather than increase the amount collected by the Treasury. Harris said tax increases could mean that “much-loved bingo halls and casinos will be forced to close”, with customers and local areas affected as a result.
Rank has also warned that an increase in Machine Games Duty would affect the commercial viability of both Mecca Bingo and Grosvenor Casinos and could result in lower tax receipts within 12 months.
The warning comes only months after the government abolished Bingo Duty from 1 April 2026. This move was welcomed by the land-based bingo industry and expected to provide a significant financial boost to operators.
However, Rank believes that increasing taxes elsewhere would undermine some of the benefit that Mecca clubs received from the abolition of Bingo Duty.
The possible tax rise relates to Machine Games Duty, which is charged on the profits generated by certain gaming machines.
A proposal put forward by the Social Market Foundation suggested doubling the duty on Category B gaming machines from 20% to 40%. The think tank estimated that such a move could raise between £275 million and £458 million each year.
The proposal initially focused heavily on adult gaming centres, which have become increasingly common on UK high streets. Andy Burnham has previously criticised the growth of these venues and supported calls for councils to be given greater powers to prevent new sites from opening.
However, Machine Games Duty does not apply solely to adult gaming centres. An increase could also affect machines operating in other gambling venues, including bingo halls and casinos, which is why Rank is concerned that a policy intended largely to target high-street gaming centres could also create problems for traditional bingo clubs.
Gaming machines now make a sizeable contribution to the finances of Mecca Bingo clubs. During the year ending 30 June 2026, like-for-like gaming machine net gaming revenue at Mecca increased by 6%. Machines accounted for 42% of the brand’s total net gaming revenue, demonstrating why any large increase in the tax charged on them would matter to the business.
Rank has been investing in its machine offering across the Mecca estate as it looks to improve the financial performance of its remaining clubs. The company is also increasingly focused on electronic bingo. Around 60% of customer visits during the last financial year involved tablet play, while electronic customers accounted for 80% of spending on mainstage bingo.
Importantly, traditional bingo remains the main reason customers visit the clubs. However, revenue from machines, food and drink and other products helps make large venues financially viable. Therefore, a sharp increase in Machine Games Duty could have consequences beyond the machines themselves if it makes individual bingo clubs less profitable.
Rank’s warning comes at a time when the number of Mecca Bingo venues has already been reduced. Nine Mecca venues closed during the 2025/26 financial year, bringing the total down from 50 clubs to 41. Rank said there had historically been an oversupply of bingo venues in the UK and is now concentrating on a smaller group of core and flagship clubs.
The remaining venues performed considerably better during the year. Like-for-like Mecca revenue increased by 4%, while underlying operating profit more than doubled from £4.3 million to £8.9 million. Rank is continuing to invest in the clubs it believes have good long-term prospects. Still, its latest comments that bingo halls could be forced to close make it clear that taxation will play an important role in determining their future viability.
While there has not yet been confirmation that Machine Games Duty will increase to 40%, it is clearly something that the industry will be keeping a very close eye on.
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