Listen to this article:The owner of Mecca Bingo and Grosvenor Casinos has made a strong start to its financial year, with Rank Group reporting rising revenues as like-for-like net gaming revenue increased by 5% to £216.1 million. The results cover the three months ending 30 September 2026, and they show growth across the company’s casino and digital businesses. However, revenue from land-based Mecca Bingo clubs remained flat, largely due to fewer customers visiting clubs over the summer.
Furthermore, the good financial performance was overshadowed by the Autumn Budget on 28 October, which confirmed an increase in Machine Games Duty. Rank has since warned that the changes could add approximately £9 million to its annual costs.
The government confirmed in its Autumn Budget that Machine Games Duty will increase from 20% to 25% for gaming machines with bets above £1 or maximum prizes above £100. The change will take effect on 1 April 2027 and will affect gaming machines found in bingo halls, casinos, betting shops and adult gaming centres. In recent weeks, Rank had warned against increasing the duty, and said that higher taxes could make some land-based gambling venues financially unviable.
When the company’s first-quarter results were published on 15 October, chief executive Richard Harris said:
“Speculation regarding the upcoming Budget continues to weigh heavily on investor sentiment, but our message has been clear – 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. HM Treasury recognised these economic arguments last year and, with the right conditions, we believe our casinos and bingo clubs can play an important role in the government’s growth agenda.”
After the Autumn Budget, Rank issued another statement on 29 October confirming that it expects the increase to cost approximately £9 million a year before taking any steps to reduce the impact. The company estimates that its tax costs will increase by around £2 million during the current financial year, which ends on 30 June 2027.
However, Rank said it is confident that it will achieve its expected like-for-like operating profit for the year. It has also promised to provide more details about how it intends to manage the additional costs when it publishes its interim results on 28 January 2027.
Grosvenor Casinos made the biggest contribution to Rank’s revenue growth during the first quarter. The casino business generated £108.1 million in like-for-like revenue, which is an increase of 6% compared with the same period last year.
Customer visits increased by 1%, while average spending per visit was up 5%. Gaming machines performed particularly well, with revenue increasing by 14%. There was also growth of 3% in table games and 5% in electronic gaming. However, Rank also closed three Grosvenor venues during the quarter, in Swansea, Reading Central and Sunderland, as the company decided that they were no longer economically viable.
Speaking before the Budget, Harris said the following about the first-quarter results:
“I am pleased with the revenue growth we have seen in the first quarter, particularly the progress we continue to make in terms of gaming machine performance in Grosvenor and the resilience of our UK digital business.”
The picture was slightly different for Mecca Bingo, where revenue from land-based clubs remained unchanged at £32.2 million. Customer visits dropped 3% when compared with the previous year, although those who did visit spent an average of 3% more. Rank said that the reduction in visitors was likely a result of the prolonged hot weather during the summer.
However, there was better news for the online side of Mecca Bingo, where revenue increased by 7%. The company has been investing in both its land-based and online bingo operations, but the latest figures suggest that the digital business is seeing better revenue growth. For land-based Mecca Bingo, the results come after a year of considerable change. Rank closed nine clubs during the previous financial year, which reduced the number from 50 to 41 venues, but at the same time it continued to invest in those it believes have better long-term prospects.
Rank’s digital operations also performed well during the first quarter, with like-for-like revenue increasing by 6% to £64.9 million. The UK digital business recorded 6% growth, while international digital revenue rose by 4%.
The company said that its UK business had continued to perform well despite the increase in Remote Gaming Duty introduced in April 2026 and a reduction in spending on traditional advertising. There was also positive news from Spain, where Rank operates the Enracha brand. Revenue from its Spanish venues increased by 7% to £10.9 million, which was helped by an 11% improvement in electronic gaming.
Overall, while Rank Group reporting rising revenues presents a positive picture, the company’s performance has been somewhat mixed. Nevertheless, it is understandable why Rank remains upbeat, having promised to provide a more detailed assessment of the Budget and outline its plans for managing the changes when it publishes its next financial results in January.
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