Budget: Mecca Bingo and Grosvenor Casinos owner reveals £50m hit
The owner of Mecca Bingo and Grosvenor Casinos has warned changes announced by Chancellor Rachel Reeves in her Budget will cost it around £46m.
Rank Group, which is a member of the FTSE 250, said the increase in Remote Gaming Duty in the Budget will significant up its tax burden.
The company’s chief executive said the group would “look to mitigate the impact where possible”.
However, the CEO welcomed the abolition of Bingo Duty – which was also announced in the Budget earlier today.
Rank Group said the increase in the Remote Gaming Duty from 21 per cent to 40 per cent will up its costs to around £46m.
The business said the abolition of the Bingo Duty would save it around £6m.
Rank Group said: “The group is reviewing various mitigating actions for the UK digital business in the context of our profitability, investment plans and the competitive landscape, which will inevitably be impacted as a result of the tax changes announced by the Chancellor.”
The company added that the impact of the 4.1 per cent rise in the hourly National Minimum Wage to £12.71 would cost it in the region of £5.5m.
CEO warns of ‘very significant blow’
In a statement issued to the London Stock Exchange, chief executive John O’Reilly said: “The announced increase in Remote Gaming Duty in the UK Budget represents a very significant blow to the regulated betting and gaming industry in the UK.
“Whilst we are pleased that the government has abolished Bingo Duty which will help to sustain jobs and investment in the land-based sector, the far more significant impact on the group is the hit to digital profitability.
“In the year to 30 June, 2025, Rank reported a profit after tax of £44.6m and paid taxes in the UK of £188m.
“That burden will now increase by a further £40m and we will look to mitigate the impact where possible.”
Rank Group is due to publish its half-year results for the six months to 31 December, 2025, on 29 January, 2026.