Rank Group Not Ruling Out M&A Possibility Amid Online Tax Increases

Rank Group has refused to rule out the possibility of M&A activity in what would be an attempt to mitigate against the impact of impending tax increases.

From April 1, remote gaming duty (RGD), paid on bets made at online casinos, will increase from 21% of operators’ gross gaming yield (GGY) to 40%.

This will be compounded on April 1, 2027, when general betting duty, paid on bets on online sports betting, will rise from 15% of GGY to 25%; bets on horseracing will be exempt from this.

While Rank Group is primarily associated with being a land-based operator due to its ownership of Grosvenor Casinos and Mecca Bingo venues, it also operates online.

Following the release of Rank Group’s financial results for the six months ended December 31, 2025, Richard Harris, group CFO and interim CEO following the departure of John O’Reilly, spoke to investors and analysts at an official presentation of the results.

Both options possible

Harris spoke about how the tax increases are expected to have an annual impact of about £46 million on its business, which will only slightly be offset by about £6 million per year in savings from the abolition of bingo duty.

Following the presentation, Harris answered several questions about the impact of the increase to RGD specifically, including one about whether Rank Group will explore M&A opportunities as a result.

Harris said:

“It’s inevitable there will be operators in the long tail that leave the market. From our perspective, we’ve done the heavy lifting around the mitigating actions we want to take at this time. We’ve got a clear plan to deliver a profitable business in the UK going forward and a clear plan that allows us to grow. It’s not just about surviving.

“Right now, I wouldn’t want to commit to M&A, because it’s a bit early to tell. Nobody really knows how this is going to play out. We’ve got other examples around the world of how things change, but right now, we’re focused on delivering the best we can do with our brands. From there, we will always consider what the next move is strategically.”

Previous example

The industry has previous when it comes to consolidation in the wake of increased tax bills. In 2014, the UK government introduced the point-of-consumption tax, requiring operators to pay tax at the point of consumption as opposed to the point of supply, meaning basing themselves in low-tax jurisdictions would no longer lead to significant tax savings.

It is widely believed this is what led to high-profile mergers such as Paddy Power’s merger with Betfair in 2016, which eventually became the conglomerate Flutter Entertainment. Ladbrokes and Coral merged in the same year, with both brands now being part of Entain.

Black market threat

Opponents of the impending tax increases often argue the cuts operators will be forced to make with regards to marketing and bonusing will push players towards the black market.

This is an argument often pushed by industry body the Betting and Gaming Council, which said earlier this month that the Treasury’s actions are “dangerous.”

On that topic, Harris said:

“We know that the government have channelled some investment to the Gambling Commission to help with enforcement against unlicensed operators, but they need every penny of that investment.

"We don’t just compete with the licensed market. Free bets and customer incentives need to be targeted to drive the best possible performance within our business.”

In Rank’s H1 2025/26 report, outgoing CEO O’Reilly said the operator will experience cost headwinds, primarily in its UK digital business, as a result of the tax increases.