Rank Group Expects FY Profit Above Forecast Despite UK Settlement

Rank Group Expects FY 2025-26 Operating Profit Above Forecast – Despite £5m UK Regulatory Settlement Provision

Key Takeaways

• Rank Group expects underlying operating profit of at least £76 million for FY 2025-26, above prior market expectations of £63.7 million.
• The company recorded a 6% year-on-year increase in like-for-like net gaming revenue to about £834.1 million.
• A £5 million provision has been included for a proposed settlement with the UK Gambling Commission.
• The UK Remote Gaming Duty increased from 21% to 40% on 1 April 2026, affecting digital operations.
• Gaming machine revenues at Grosvenor Casinos rose 12% in Q4 following estate expansion.

Full-Year Profit Expected to Surpass Market Forecasts

Rank Group Plc has reported stronger-than-anticipated financial performance for the financial year ending 30 June 2026. The operator expects underlying operating profit to reach at least £76 million. This exceeds earlier market expectations of £63.7 million that were referenced in its third-quarter update.

The company stated that performance during the year reflected progress across its business segments despite higher costs and taxation. Rank is scheduled to publish its preliminary full-year results later this summer.

Net Gaming Revenue Increased Across All Divisions

For the 12-month period, Rank generated approximately £834.1 million in like-for-like net gaming revenue, representing a 6% increase year on year. Growth continued into the fourth quarter, when like-for-like net gaming revenue reached £208.9 million, also up 6% compared with the prior year.

Grosvenor Casinos, the group’s largest division, reported full-year net gaming revenue of £397.3 million, an increase of 5%. In the fourth quarter, Grosvenor generated £98.3 million, up 3% year on year.

The digital division delivered the strongest annual growth rate within the group. Full-year net gaming revenue in digital rose 8% to £248.5 million. In the fourth quarter alone, digital revenue increased 12% to £63.9 million.

Mecca Bingo venues recorded £143.0 million in net gaming revenue for the year, up 4%. Fourth-quarter revenue at Mecca reached £35.4 million, also 4% higher than a year earlier.

In Spain, Enracha Casinos generated £45.3 million in full-year net gaming revenue, a 7% increase. Fourth-quarter revenue in Spain rose 6% to £11.3 million.

UK Regulatory Review Leads to £5 Million Provision

Rank has included a £5 million provision in its 2025-26 accounts related to a proposed regulatory settlement with the UK Gambling Commission. The matter follows preliminary findings from an ongoing review of Grosvenor Casinos Limited’s operating licence.

The review addresses compliance issues covering the period from 1 November 2024 to 1 May 2025. On 20 May, Rank submitted a settlement proposal that includes a £5 million payment in lieu of a financial penalty. The amount was calculated with reference to gross gambling yield and recent Gambling Commission guidance that took effect in October 2025.

The company stated that remedial actions were substantially implemented during the first half of the financial year. It is currently awaiting a formal finalisation letter from the regulator.

For operators and users in the UK market, regulatory settlements and licence reviews are relevant because they can affect compliance requirements, operating conditions and financial performance.

Gaming Machine Expansion Drives Grosvenor Growth

A key contributor to growth at Grosvenor Casinos was gaming machine revenue. In the fourth quarter, gaming machine revenue increased by 12%, compared with 10% growth in the third quarter.

Rank expanded its estate by approximately 850 gaming terminals during the first half of the year. This followed UK government legislation implemented in July of the previous year that allowed casinos to increase the number of gaming machines on their premises. The change represented a 60% rise in permitted machine numbers.

The company identified gaming machine revenue growth as a significant opportunity within its broader expansion strategy. In the third quarter, gaming machines were already the fastest-growing vertical, with net gaming revenue up 10%.

Digital Division Absorbs Higher Remote Gaming Duty

Rank’s digital division recorded a 12% rise in like-for-like net gaming revenue during the fourth quarter. This acceleration occurred despite a substantial increase in the UK Remote Gaming Duty.

The UK government raised the Remote Gaming Duty from 21% to 40%, effective 1 April 2026, following the 2025 autumn budget. The higher tax rate directly affects margins in online gaming operations.

To manage the impact, Rank maintained spending on performance marketing and customer incentives while reducing above-the-line marketing, supplier costs and headcount. According to the company, these cost control measures supported revenue and profit resilience during the period.

Spanish Division Reports Payment Fraud Incident

Rank’s Spanish branch, including Enracha Casinos, was affected by a €7.1 million payment fraud incident in December of the previous year. The company reported the matter to relevant law enforcement agencies and is supporting investigations while conducting its own internal review with the assistance of an external law firm.

The incident was disclosed separately from the annual performance update. Operational performance at Mecca Bingo and Enracha Casinos was described as in line with expectations.

Our Assessment

Rank Group’s expected operating profit of at least £76 million for FY 2025-26 exceeds earlier market forecasts despite a £5 million regulatory provision and a higher UK Remote Gaming Duty rate. Revenue growth across Grosvenor Casinos, digital operations, Mecca Bingo and Enracha Casinos contributed to the result. The expansion of gaming machines in the UK and cost control measures in digital operations were identified as key operational factors during the year.