Rank Group CEO Calls for Unity with Government Ahead of Budget

Rank Group Chief Executive Richard Harris has once again warned the UK government about the potential dangers of increasing machine games duty (MGD), arguing operators can play a role in the government’s growth agenda.

In June, cross-party think tank the Social Markets Foundation called for MGD on Category B machines in the UK to be raised to 40% of net takings, which would be double the current rate of 20% of revenue generated on gaming machines in both casinos and bingo halls.

The SMF wants a tax rate to encompass all Category B machines, arguing the government needs to raise revenue, and that more harmful types of gambling should lead to higher rates of tax.

The SMF’s basis for this is that, according to the Gambling Survey for Great Britain covering 2023, one in four (27%) casino game users on machines gambles at risky or harmful levels - the highest of any major category.

Harris has history

In September, Harris told investors an increase in MGD would “make no economic sense” and would be “nonsensical”, warning that raising the rate to 40% will cause job losses at the Grosvenor Casinos and Mecca Bingo owner. Rank operates machines at its land-based venues.

Harris’ comments were made following reports suggesting UK Chancellor John Healey is giving serious consideration to implementing the 40% rate in the Autumn Budget, which will be announced on Wednesday, 28 October.

In last year’s Autumn Budget, remote gaming duty (RGD), paid on online casino bets, was raised from 21% of gross gambling yield (GGY) to 40%, with the change being implemented in April this year.

Another gambling tax increase was announced in last year’s Autumn Budget by then Chancellor Rachel Reeves regarding general betting duty (GBD), paid on online sports bets. In April 2027, GBD will rise from 15% of GGY to 25%; bets on horseracing will be exempt from the increase.

“We can play a role”

Reacting to Rank’s Q1 2026/27 trading update, Harris referenced last year’s Budget, which could have been worse for Rank, as the Institute of Public Policy Research had recommended a 50% RGD, 50% MGD, 25% GBD and a horseracing tax of 15%. An MGD increase was eventually not taken forward into the government’s proposal before last year’s Autumn Budget.

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.”

Rank’s revenue up

In its trading update covering the three months ended September 30, Rank announced like-for-like net gaming revenue (NGR) of £216.1 million, up 5% year-on-year. Grosvenor venues contributed about half the group’s NGR at £108.1 million, up 6%.

Digital NGR improved 6% to £64.9 million, while NGR at Mecca venues flatlined at £32.2 million. Enracha, Rank’s land-based Spanish gaming brand, contributed NGR of £10.9 million, up 7%.

Rank said that based on the current tax regime in the UK, it is confident of delivering group like-for-like operating profit in line with market expectations for the current year. However, Rank did not state its expectations in this regard if the tax regime is altered.