Rank Group Warns of Closures if Machine Games Duty Rises
Written by Nils Frank · Aug 26, 2026
Rank Group Warns of Closures if Machine Games Duty Rises
Rank Group, the FTSE 250 company operating over 70 Mecca Bingo sites alongside Grosvenor Casinos, has issued a direct warning that any increase in Machine Games Duty from its current 20% rate would threaten the viability of its land-based operations and could trigger venue closures within the next 12 months, which in turn might reduce overall tax receipts for the government.
Financial Results for the Year Ending June 2026
Figures for the year to end-June 2026 show gaming revenue rose 5% to £835 million, yet pre-tax profit dropped 15% to £39 million as the business continued to adjust its portfolio, and the company has already closed nine Mecca venues as part of its streamlining efforts.
Those adjustments come after the earlier abolition of Bingo Duty and following recent increases in remote gaming duty, which have reshaped the tax landscape for both land-based and online operators in the sector.
Statement on Machine Games Duty
Rank Group stated that an increase in Machine Games Duty would put pressure on margins at bingo halls and casinos where player spending on gaming machines forms a key revenue stream, and the company highlighted that such a change could lead to reduced investment, fewer sites, and ultimately lower total tax contributions from the industry.
Industry Context and Recent Changes
Observers note that the sector has already adapted to the removal of the old Bingo Duty and to higher rates on remote gaming, while operators like Rank continue to manage costs across their physical locations amid shifting player habits and regulatory pressures.
Data from the period ending June 2026 illustrates this mixed picture, with revenue growth offset by tighter profitability and ongoing site rationalisation that has seen multiple Mecca Bingo locations close in recent months.
Rank Group operates both bingo and casino brands in a market where land-based venues compete with digital alternatives, and the company has pointed out that further tax rises on machine gaming could accelerate the pace of closures already underway.
Potential Outcomes Within 12 Months
According to the company's assessment, higher Machine Games Duty would threaten the continued operation of many sites because margins on machine play would shrink, leading to fewer locations open to the public and a corresponding drop in employment and local tax generation.
Research suggesting doubling MGD to 40% could raise £275m–£458m extra annually from £2-a-spin slots has circulated in policy discussions, yet Rank Group maintains that the net effect on land-based operators would include reduced overall receipts once venue viability is taken into account.
Operational Adjustments Already Underway
The nine Mecca venues closed to date form part of a broader programme to align the estate with current demand, and the company continues to monitor how tax policy changes might influence future decisions on which sites remain open.
Those who've followed the company's updates know that Rank has balanced revenue growth in gaming against profit compression and has responded by focusing resources on stronger-performing locations while exiting others.
Conclusion
Rank Group's warning ties directly to its reported results for the year ending June 2026 and to the wider context of duty changes affecting bingo and casino operators, with the company emphasising that any rise in Machine Games Duty carries risks for both its business and government tax income over the coming 12 months.