Rank Group expects the UK Government's increase in Machine Games Duty (MGD) to add approximately £9m to its annual costs before mitigating measures are implemented.
The duty rate will rise from 20% to 25% from 1 April 2027 following the UK Autumn Budget 2026. For Rank's current financial year ending 30 June 2027, the change is expected to increase duty costs by approximately £2m due to its introduction during the final quarter.
Despite the additional cost, Rank maintained its outlook and said it remains confident of delivering group like-for-like operating profit in line with expectations for the current year.
The operator plans to provide further details on the Budget's overall impact and the measures it intends to take when it publishes interim results for the six months ending 31 December 2026 on 28 January 2027.
The update follows Rank's first-quarter results earlier this month, when it reported LFL net gaming revenue of £216.1m, up 5% year on year.
Grosvenor venues generated £108.1m during the quarter, representing 6% growth, with gaming machine revenue increasing 14%. Digital LFL NGR rose 6% to £64.9m, while Mecca venues remained flat at £32.2m.
Rank had previously warned that a higher MGD rate could increase operating costs and place additional pressure on the viability of its venues. During the first quarter, the company closed Grosvenor casinos in Swansea, Reading Central and Sunderland after determining they were no longer economically viable over the medium term.
Rank shares rose 11.2% on 28 October
