Rank Group Q1 net revenue up 5% to £216.1m as digital grows despite higher UK tax

Rank Group, owner of Grosvenor casinos and Mecca Bingo, has reported first-quarter net revenue of £216.1m, a 5% increase on the same period a year earlier. The figures cover the first trading period since the higher Remote Gaming Duty took effect in April 2026.

Like-for-like digital net gaming revenue reached £64.9m, up 6% year on year. Growth was recorded in both the UK business, at 6%, and the international operations, at 4%. Net revenue from the Mecca online brand rose 7%. The company said the UK digital business continued to show resilient customer metrics despite the higher tax regime and lower above-the-line marketing spend, and that balancing the customer proposition with marketing spend remains a priority as the digital landscape resets.

In retail, Grosvenor casinos grew revenue by 6% to £108.1m, with visits up 1% and spend per visit up 5%. Table gaming revenue rose 3% and electronic gaming revenue rose 5%, while gaming machine revenue climbed 14%. Mecca venues generated flat revenue of £32.2m, as a 3% fall in visits was offset by a 3% rise in spend per visit. Rank attributed the lower footfall mainly to the prolonged UK heatwave. In Spain, Enracha venues brought in £10.9m, up 7%.

The strong machine performance could be exposed to a potential increase in Machine Games Duty from 20% to 40%, which is the subject of speculation ahead of this year's Autumn Budget. Chief Executive Officer Richard Harris said the speculation continues to weigh heavily on investor sentiment. He argued that any increase would raise costs, reduce venue viability, lead to closures and job losses, cut tax receipts and halt investment. Harris recently suggested that such a hike could lead Rank to close around a third of its venues.

Harris noted that HM Treasury recognised these economic arguments last year and said that, under the right conditions, the company's casinos and bingo clubs could support the government's growth agenda. Rank said its outlook for the rest of the year, based on the current industry tax regime, still points to profit in line with market expectations. Harris said he was pleased with first-quarter revenue growth, particularly gaming machine progress at Grosvenor and the resilience of the UK digital business.