One of the UK’s biggest employers in the gambling sector has confirmed that it has made redundancies as a reaction to the tax hikes imposed upon the industry.
The Rank Group, whose brands include Grosvenor Casino and Mecca Bingo, is also facing regulatory action from the Gambling Commission – which it hopes to settle at a cost of £5 million.
Nevertheless, the firm remains bullish as it closes in on revenues of £834.1 million for the financial year – breaking the record that they set in 2025.
Headcount Reductions
In the firm’s latest trading update, the Rank Group has confirmed the round of redundancies – although it hasn’t publicly stated how many members of staff have been let go.
Instead Richard Harris, who has revealed that his interim spell as CEO has now been made permanent, simply referred to ‘headcount reductions’ – citing the increase in Remote Gaming Duty (RGD) from 21% to 40%, as confirmed by the chancellor in November and rolled out in April.
Despite Bingo Duty being abolished by Rachel Reeves, Rank had budgeted for a reduction in profits of around £46 million due to the RGD increase.
Like many firms, the Rank Group have been looking for ways to cut costs and absorb the tax hike, with redundancies one of the unfortunate ways they have chosen to do so.
“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,” they commented back in November.
The trading call to shareholders also confirmed that the company will be cutting back on their marketing spend and reducing supplier costs in a bid to make up for the shortfall.
The good news for their customers is that the firm won’t be removing their promotions and bonuses – Harris outlined the need to retain their existing players while attempting to maximise growth with new customer incentives.
Settlement Proposal
The UK gambling behemoth has admitted that it faces a huge fine over a series of regulatory failings.
Advising investors in that trading call, Harris revealed that the Rank Group has submitted a motion to the Gambling Commission that will see them pay a £5 million cash settlement – as opposed to an official fine.
The regulator has been investigating the firm over what it describes as ‘historical compliance failings’, although specifics have not been given.
It has been reported by some media outlets that the Gambling Commission is said to be ‘minded to accept the settlement proposal’, with the process now entering its administrative phase.
The Rank Group was previously fined £500,000 by the regulator in 2018 after a probe found they had insufficient processes in place to protect problem gamblers.
Record Growth
Net gaming revenue for the Rank Group for the year ending June 30 was expected to reach £834.1 million – besting the 2025 figure of £795.3 million by some 6%, while also representing record growth for the company.
Although the data was still being collated at the time of writing, the Rank Group is expecting their online business arm to have witnessed an 8% revenue rise for the period.
Now all eyes will be on the 2027 data to see how the rise in Remote Gaming Duty impacts the firm.
Both the Grosvenor Casino and Mecca Bingo venues continued to perform solidly, with the former expected to deliver 5% year-on-year growth for the period – attributed to revenues of £397.3 million.
And that comes despite the disruption to their international venues, with increasing travel and hospitality costs – plus the conflict in the Middle East – not impacting their bottom line as negatively as predicted.
Gaming machine revenue grew by 12% in quarter four, with that enhanced performance attributed to an expansion in the number of machines – Rank added more than 850 new terminals in the first half of their financial year.
Commenting on the results, Harris said:
“Our expected profit outturn for the year reflects the progress we have made in executing our plan for growth, despite the significant cost and taxation headwinds that we have incurred during the year.
“We have worked hard to mitigate the impact of the RGD increase, while protecting digital revenues and optimising performance in our land-based businesses.”
As of 3pm GMT on Tuesday, Rank’s share price had risen 2.7% for the day and 5.5% over the past five days, although they’re down around 2.4% in 2026 as a whole.