Rank Group, the FTSE 250 operator behind Mecca Bingo and Grosvenor Casinos, has warned that higher machine taxes could force the closure of its bingo halls and casinos nationwide. The company said any rise in Machine Games Duty (MGD), currently 20%, would threaten the commercial viability of its land-based venues.
Potential tax increase impact
Research from the Social Market Foundation suggests doubling the duty to 40% could raise an extra £275 million to £458 million a year from £2-a-spin slot machines alone. Chief executive Richard Harris said proposals from anti-gambling campaigners “continue to cast clouds” over a regulated industry that supports jobs and delivers hospitality experiences to millions.
Rank paid more than £225 million in taxes and duties last year. Harris said: “Tax increases for clubs like ours, with high levels of supervision and operating on tight margins, will swiftly lead to lower tax receipts as much-loved bingo halls and casinos will be forced to close, impacting customers in local communities.”
Recent tax changes and financial results
The warning follows recent tax changes that have already increased costs. Remote gaming duty rose from 21% to 40% from the start of April, while a new general betting duty rate is due in 2027. Although the specific tax on physical bingo halls was abolished earlier this year, the heavy use of gaming machines at Mecca sites leaves Rank exposed to any MGD increase.
In results for the year to the end of June, Rank reported gaming revenue up five per cent to £835 million. Pre-tax profit, however, slipped 15% to £39 million. The group has already been rationalising its estate, closing nine Mecca Bingo venues during the year to create a leaner network of core clubs and flagship sites better able to compete. It described the remaining portfolio as healthier and more sustainable.
Wider implications for venues
Rank argued that higher machine taxes would hit venue viability across both Grosvenor and Mecca brands and reduce overall tax receipts within 12 months as sites closed. Land-based operators work on tight margins and provide high levels of supervision. Forcing closures, the company suggested, risked pushing customers into unregulated environments rather than reducing harm.
The group has invested in electronic gaming and digital machines at its venues while taking cost actions in response to higher taxation already applied to the UK digital sector. Underlying trading showed resilience, with growth in customer visits and spend in places, yet management remains clear that further duty rises on machines would undermine the economics of many high-street and community sites.
With the operator’s combined estate still numbering well over 70 locations, any wave of closures would affect towns and cities across Britain, removing familiar social venues that many local people rely on for entertainment and employment.
