Rank Group Issues Warning on Machine Games Duty Increase After Remote Gaming Tax Changes

Rank Group, which operates Grosvenor Casinos and Mecca Bingo halls, has stated that any rise in Machine Games Duty from its current 20% rate would put the continued operation of its land-based sites at risk; the company indicated this could result in multiple closures across the UK and a reduction in total tax contributions within the following 12 months.

The announcement comes after the remote gaming duty rate doubled to 40% in April 2026, and it arrives alongside the release of Rank Group's latest financial results showing gaming revenue of £835 million for the year ending June 2026, which represents a 5% increase despite the higher tax environment already in place.

Company Position on Tax Adjustments

Rank Group has outlined that further increases to Machine Games Duty would compound existing cost pressures from the recent remote gaming duty change; executives noted that land-based venues rely on stable duty levels to maintain employment and contribute to local economies through both direct taxes and secondary spending.

Data from the company's filings shows the £835 million revenue figure reflects continued customer engagement at physical sites, yet the operator has flagged that margins remain tight after the remote duty adjustment took effect earlier in the year.

Potential Outcomes for UK Venues

Closures of bingo halls and casinos would follow if Machine Games Duty rose, according to the company's assessment, because many locations operate on narrow profit thresholds where an additional duty burden would eliminate viability; Rank Group has suggested this scenario could unfold within a single fiscal year and reduce overall government receipts as fewer taxable operations remain active.

Those who track the sector have pointed out that land-based gambling facilities already face competition from online platforms, and the doubling of remote gaming duty in April 2026 has shifted some cost structures without fully offsetting the difference for physical operators.

Revenue Performance in Context

The 5% revenue growth to £835 million for the year to June 2026 demonstrates resilience in customer volumes at Grosvenor Casinos and Mecca Bingo locations, but Rank Group has emphasized that this figure incorporates the effects of the remote duty increase and leaves limited room for further tax adjustments on gaming machines.

Company reports connect the revenue result directly to ongoing operations at existing venues, while warning that any Machine Games Duty change would accelerate decisions on site rationalization and reduce the tax base generated by those same locations.

Broader Tax Landscape

Since the remote gaming duty moved to 40% in April 2026, land-based operators have monitored discussions around Machine Games Duty adjustments; Rank Group's statement positions the current 20% rate as a threshold beyond which many physical sites would struggle to continue trading.

Figures released alongside the revenue update show that tax contributions from the group's venues remain significant, yet the company has calculated that closures triggered by a duty rise would lower aggregate receipts as activity migrates or ceases entirely.

Timeline and Next Steps

Rank Group delivered its warning in the weeks following the June 2026 year-end results, placing the issue in front of policymakers during August 2026 budget considerations; the operator has requested that any review of Machine Games Duty accounts for the cumulative impact of the earlier remote duty change.

Stakeholders in the land-based sector continue to reference the company's projections when discussing duty stability, noting that the £835 million revenue base supports thousands of jobs and supplier relationships that could contract if further tax increases materialize.

Conclusion

Rank Group's recent filing ties the £835 million revenue performance directly to the sustainability of its Grosvenor Casinos and Mecca Bingo network under current tax settings; the operator has stated that an increase in Machine Games Duty would threaten venue viability and reduce total tax receipts within 12 months, following the remote gaming duty adjustment implemented in April 2026.