Rank Group Warns UK Bingo Halls, Casinos at Risk if Government Hikes Gambling Taxes

Rank Group, the operator behind Grosvenor Casinos and Mecca Bingo, is warning that a proposed £460 million ($621 million) tax hike on UK gambling machines could force venue closures across the country. Chief executive Richard Harris said the plan, floated ahead of Andy Burnham’s appointment as prime minister, would hit an industry already absorbing steep tax increases from the last year’s budget.

The proposal, pushed by a left-wing think tank, calls for raising Machine Games Duty from 20 percent to 40 percent — effectively doubling the tax rate on slot and fruit machines found in bingo halls and casinos. Harris said any such increase “will further impact venue viability across both Grosvenor and Mecca and will lead to a reduction in tax receipts within 12 months.”

A Sector Already Squeezed by Tax Hikes

Rank isn’t speaking from a position of financial comfort. The FTSE 250 company said it paid more than £225 million ($304 million) in UK taxes last year alone, and it’s still working through the fallout of a separate tax increase that hit its digital business earlier this year. The Autumn Budget raised Remote Gaming Duty from 21 percent to 40 percent, a change that took effect in April and forced Rank to cut costs — including headcount reductions, lower marketing spend, and supplier cost optimization — just to protect its bottom line.

Despite those pressures, Rank posted record net gaming revenue of roughly £835 million for the year ending June 30, up 5 percent year-over-year. But pre-tax profit slipped 15 percent to £39 million, underscoring how much of that top-line growth is being eaten up by higher tax bills. Grosvenor Casinos brought in £397.3 million in net gaming revenue for the year, while Mecca Bingo added £143.0 million.

Bingo Halls Caught in the Crossfire

The irony for Mecca Bingo specifically is that the UK government scrapped a separate tax on physical bingo halls earlier this year. But because gambling machines remain a significant revenue driver inside those same venues, a hike to Machine Games Duty would still land hard on the format Rank had just caught a break on. Harris framed the stakes bluntly, saying higher taxes would mean “much-loved bingo halls and casinos will be forced to close, impacting customers in local communities.”

Rank has leaned increasingly on digital machines and electronic gaming inside its physical venues to offset cost pressures, with like-for-like digital net gaming revenue up 12 percent in the most recent quarter. That diversification has helped cushion the blow so far, but Harris’s warning suggests there’s a ceiling to how much more the operator can absorb before venues start closing outright. For bettors who enjoy retail casino visits alongside social casino play online, the debate over UK gambling taxation is a reminder of how policy shifts can reshape which venues and platforms remain viable over time.

What Happens Next

No formal proposal to raise Machine Games Duty has been confirmed by the new government, and the £460 million figure originated from think tank speculation rather than an official Treasury plan. Still, with Rank already navigating the effects of the Remote Gaming Duty increase — including a £5 million settlement offer to the Gambling Commission over a separate licensing investigation — the company is clearly bracing for the possibility of another round of tax pressure. How the government responds will shape not just Rank’s next fiscal year, but the broader health of Britain’s land-based gambling sector.