The Rank Group, owner of Grosvenor Casinos and Mecca Bingo, has initiated staff cuts to offset rising operational costs following a significant increase in the UK’s Remote Gaming Duty (RGD). The company confirmed it is adjusting its cost base after the government raised the tax rate on online gambling from 21 per cent to 40 per cent in the last Autumn Budget, a policy that took effect in April.
Impact of Remote Gaming Duty Hikes
The tax increase has pressured the group’s bottom line, forcing management to seek efficiencies across its digital and retail operations. According to company disclosures, the firm has reduced marketing expenditure and trimmed supplier contracts alongside targeted headcount reductions to mitigate the financial impact of the RGD hike.
Despite these cost-cutting measures, Rank Group’s chief executive Richard Harris—who was appointed to the permanent role earlier this week—noted that the company continues to face substantial taxation headwinds. To maintain market share, the group has opted to protect its investment in digital advertising, loyalty rewards, and customer bonuses. This strategy appears to be yielding results in the digital segment; the company reported a 12 per cent increase in like-for-like digital net gaming revenue (NGR), reaching £63.9m in the final quarter.
Regulatory Settlement with the Gambling Commission
Beyond fiscal challenges, Rank Group is working to resolve regulatory scrutiny. The company has submitted a proposal to the UK Gambling Commission to settle an investigation into its Grosvenor casino licensing compliance. The group has offered a £5m payment to avoid further formal penalties.
The gambling watchdog has indicated it is "minded to accept" the settlement, pending final paperwork. To prevent this one-off expense from skewing its reported profitability, Rank Group intends to record the payment as a separately disclosed item in its financial statements.
Performance Across Business Segments
Rank Group’s physical venues have shown resilience despite broader economic pressures. Performance metrics for the final quarter include:
- Grosvenor Casinos: NGR rose 3 per cent to £98.3m, supported by strong gaming machine performance, despite international travel disruptions affecting some locations.
- Mecca Bingo: NGR reached £35.4m.
- Enracha: The group’s venues reported NGR of £11.3m.
Investors reacted positively to the update, with Rank Group shares rising 8.3 per cent to 102.3p in early trading on July 14, 2026. The stock has seen a 5.2 per cent appreciation since January.
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