Rank CEO Warns MGD Increase Would “Reduce Viability” of Venues
The Rank Group has reported a 5% year-on-year increase in like-for-like net gaming revenue (NGR) for the first quarter of its 2026/27 financial year, but the strong trading performance was accompanied by a renewed warning from chief executive Richard Harris over the potential impact of a rise in Machine Games Duty (MGD).
The UK land-based and digital gambling operator reported like-for-like NGR of £216.1m for the three-month period, building on momentum from the previous financial year, in which group like-for-like NGR rose 6% to £834.1m. Growth was recorded across Rank’s portfolio, which includes Grosvenor Casinos, Mecca Bingo, its Spanish-facing Enracha business and its digital operations.
The update follows a period of sustained expansion for the company. Rank’s full-year results for the 12 months ended 30 June 2026 showed underlying operating profit up 21%, supported by continued investment in its Grosvenor venues, Mecca bingo halls and digital platform. Early trading in the new financial year was also described as encouraging, with revenue up 8% in the first six weeks and Grosvenor gaming machine revenue increasing by 15% over that period.
Renewed Warning on Machine Games Duty
Despite the positive results, Harris used the update to press the case against any increase in MGD, which is currently set at 20%. In remarks reported by iGaming Business, the chief executive stated: “Any increase to Machine Games Duty will increase costs, reduce venue viability, lead to venue closures and job losses, reduce tax receipts.”
The warning follows the UK government’s Autumn Budget 2025, which left MGD unchanged while significantly raising other gambling taxes. Remote Gaming Duty, which applies to online gambling, was increased from 21% to 40% with effect from 1 April 2026, and bingo duty was abolished. However, speculation persists that the Chancellor may yet turn to MGD as a further source of revenue, with industry analysis – including work published by Deutsche Bank – identifying Rank as having the greatest exposure to a potential rise among listed operators.
The sector’s concerns are not without foundation. Analysis submitted to the Treasury indicated that a number of land-based casino venues operate at a loss, meaning additional duty costs could tip marginal sites into closure. Rank has also highlighted its own commitment to the sector, with investment of approximately £60m per annum planned over two years in its venue estate.
