The Rank Group on Thursday told investors that an increase in Machine Games Duty from 20% to 25%, announced in Wednesday's UK Autumn Budget and effective from 1 April 2027, will add an estimated £9m to annualised costs before any mitigating action.
The London-listed casino and bingo operator, which runs the Grosvenor and Mecca brands alongside a UK digital gaming business, said the duty increase will add approximately £2m to costs in the current financial year ending 30 June 2027.
Rank said it remains confident of delivering group like-for-like operating profit in line with expectations for the current year.
The tax change lands weeks after Rank reported underlying operating profit of £78.6m for the 12 months to 30 June, up 21% from £64.8m, with the board flagging a medium-term ambition of at least £100m in underlying operating profit; the group has already absorbed a rise in Remote Gaming Duty to 40% from 21% that took effect from 1 April.
Rank said it will provide a more detailed update on the full Budget impact and its mitigating actions when it publishes interim results for the six months to 31 December 2026 on 28 January 2027.
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