Rank Group to face £40m operating profit reduction amid RGD increase

Following the release of the UK Autumn Budget Statement on 26 November, which included an increase in Remote Gaming Duty (RGD) from 21% to 40%, The Rank Group Plc stated it will begin reviewing "various mitigating actions" for UK digital operations.

Rachel Reeves, Chancellor of the Exchequer, released the Budget statement on 26 November as the UK Parliament hopes this will raise £1.1bn by 2029-30. The increase in RGD is set to go into effect by April 2026, while a new online sports betting duty will be introduced at 25% beginning in April 2027.

The online sports betting duty will exclude self-service betting terminals, spread betting, pool bets and horseracing.

Rank Group stated increases in tax payments are proportionately offset by a £6m benefit "arising from the abolition of bingo duty" as part of the UK Autumn Budget 2025 statement.

"The announced increase in Remote Gaming Duty in the UK Budget represents a very significant blow to the regulated betting and gaming industry in the UK," Rank Group Chief Executive John O'Reilly said.

"Whilst we are pleased that the Government has abolished bingo duty which will help to sustain jobs and investment in the land-based sector, the far more significant impact on the Group is the hit to digital profitability.

"In the year to 30 June 2025, Rank reported a profit after tax of £44.6m and paid taxes in the UK of £188m. That burden will now increase by a further £40m and we will look to mitigate the impact where possible."

While Rank Group's operating profit will face a reduction of £40m prior to mitigation, the 4.1% increase in hourly National Minimum Wage and other changes to employment taxes were "within the company's expectations."

Rank Group also stated it will report the interim results for the six-month period ending 31 December on 29 January, following its review of mitigating actions in the context of "profitability, investment plans and the competitive landscape."