Rank Group Forecasts Stronger FY26 Profit Despite UK Gambling Commission Settlement Provision

Rank Group, the UK gambling operator behind Grosvenor Casinos and Mecca Bingo, now expects underlying operating profit of at least £76 million (roughly $102.1 million) for the fiscal year ended June 30, 2026, well above previous market expectations of £63.7 million. The upgraded outlook comes even as the company sets aside a £5 million provision tied to a proposed settlement with the UK Gambling Commission.

The stronger-than-expected performance reflects broad-based growth across Rank’s portfolio, which spans land-based casinos, bingo halls, and a UK-facing digital betting and gaming business. It’s a notable result given the operator also absorbed a major tax hike on its online operations during the same period.

Revenue Growth Across Every Segment

Rank reported that like-for-like net gaming revenue climbed 6% year-on-year to approximately £834.1 million (about $1.12 billion) for the full fiscal year, with fourth-quarter like-for-like revenue also up 6% to £208.9 million. Every business unit within the group posted year-on-year gains.

Grosvenor Casinos, Rank’s flagship land-based brand, generated £397.3 million (roughly $533.5 million) in full-year net gaming revenue, a 5% increase, with fourth-quarter revenue rising 3% to £98.3 million. Gaming machine revenue was a particular bright spot, up 12% in the fourth quarter compared to 10% growth in the third quarter. Rank credited the acceleration to optimization efforts and the rollout of roughly 850 additional gaming machines across its casino estate — a nearly 60% expansion of its machine footprint — following UK regulatory changes in July 2025 that allowed casinos to add more units.

Rank’s digital division was the standout performer, with full-year revenue rising 8% to £248.5 million (about $333.7 million) and fourth-quarter growth accelerating to 12%, reaching £63.9 million. That growth came despite a steep increase in the UK’s Remote Gaming Duty, which jumped from 21% to 40% effective April 1, 2026. Rank said it protected margins by trimming above-the-line marketing spend, supplier costs, and headcount while continuing to invest in performance marketing and customer incentives.

Mecca Bingo posted full-year net gaming revenue of £143.0 million (about $192.0 million), up 4%, with fourth-quarter revenue also rising 4% to £35.4 million. In Spain, Rank’s Enracha Casinos business generated £45.3 million (roughly $60.8 million) in full-year revenue, a 7% increase, with fourth-quarter revenue climbing 6% to £11.3 million. That performance came in the wake of a €7.1 million payment fraud incident disclosed by the company in December 2025, which Rank reported to law enforcement while launching an internal investigation with outside legal support.

UKGC Settlement and What Comes Next

The £5 million provision stems from a proposed settlement with the UK Gambling Commission following the regulator’s review of Grosvenor Casinos Limited’s operating licence, which examined compliance issues between November 1, 2024, and May 1, 2025. Rank submitted its settlement proposal on May 20, offering the £5 million payment in lieu of a financial penalty, calculated using gross gambling yield and the Commission’s revised penalty guidance introduced in October 2025.

The company is still awaiting formal confirmation from the regulator but said remedial measures have been substantially implemented and that engagement with the Commission remains constructive.

“Our expected profit outturn for the year reflects the progress we have made in executing our plan for growth, despite the significant cost and taxation headwinds that we have incurred during the year,” said Rank Chief Executive Officer Richard Harris.

Rank reaffirmed its medium-term target of at least £100 million (about $134.3 million) in operating profit and said it will publish full preliminary results for the 2025/26 fiscal year later this summer. The upgraded guidance suggests the operator is managing regulatory and tax pressures better than the market had anticipated, with its digital and machine-gaming growth doing much of the heavy lifting.