Rank Group, a leading name in the UK’s gambling sector, has reported a 5% increase in like-for-like net gaming revenue for the quarter ending March 31, 2026. The company’s revenue climbed to £205.4 million, positioning it to exceed the previous fiscal year’s operating profit of £63.7 million, excluding certain adjustments. This development is significant within the context of ongoing regulatory changes and market dynamics that impact the gambling industry across the UK.
The Grosvenor Casinos division, a key component of Rank Group, experienced a notable contribution to these results. It reported £95.0 million in revenue, marking a 5% increase from the previous year. This growth was catalyzed by legislative changes in the UK that came into effect in July 2025, permitting casinos to increase their number of gaming machines. Subsequently, Grosvenor Casinos introduced approximately 850 additional machines, resulting in a 10% rise in net gaming revenue from this vertical. Additionally, the legislative changes allowed sports betting, prompting Rank to initiate in-person wagering trials at 38 of its 50 Grosvenor locations, with initial tests conducted in Luton, Leicester, and Reading.
Despite geopolitical tensions in the Middle East affecting global travel patterns, Rank Group remains optimistic about sustaining its revenue trajectory in the fourth quarter. However, the company faces challenges within its digital arm due to a recent increase in the Remote Gaming Duty (RGD) from 21% to 40%. This tax hike is expected to impact Rank’s digital operations significantly, with an estimated £46 million annual cost before mitigation strategies. In response, Rank has implemented cost-saving measures, including staff reductions and marketing cuts, while protecting key areas such as performance marketing and customer incentives.
Rank’s digital segment posted a 4% rise in net gaming revenue to £60.9 million. Yet, growth in the UK was modest at 2%, attributed to tough comparisons from the previous year. Conversely, Rank’s Spanish digital operations performed robustly, with a 14% increase in revenue, which helped offset the weaker UK results. Industry analysts from Regulus Partners have advised Rank to invest more heavily in its digital offerings to avoid a commoditized experience and promote long-term growth instead of focusing solely on short-term profit preservation.
Rank’s bingo operations, under the Mecca brand, benefited from the UK government’s removal of bingo duty starting April 2026. This policy change is expected to result in double-digit growth in operating profit for Mecca, with savings of approximately £6 million annually. The division’s third-quarter revenue rose to £37.8 million, reflecting a 5% year-on-year improvement.
Rank’s Enracha business in Spain also contributed positively, with revenue increasing by 9% to £11.7 million. This growth was largely driven by gaming machines, which saw a 27% rise in revenue during the quarter. The strong performance in Spain compensates for some of the challenges faced in the UK market.
Over the first nine months of the fiscal year, Rank Group’s total like-for-like net gaming revenue reached £625.2 million, a 6% increase year-on-year. The company anticipates continued revenue growth in the fourth quarter, projecting an underlying operating profit of £68 million, despite energy price volatility linked to geopolitical events. Interim Chief Executive Richard Harris, who assumed leadership after John O’Reilly’s retirement, expressed confidence in the group’s ability to achieve its medium-term target of £100 million in operating profit. Harris highlighted the company’s strategic initiatives aimed at mitigating the impact of higher taxes on its UK digital operations and fostering sustainable revenue growth.
Market response to Rank Group’s trading update was positive, with its shares rising 12.27% to 101.50 pence per share in London as of this morning. The company’s ability to navigate regulatory changes while maintaining growth exemplifies its resilience in a challenging market landscape. As Rank Group approaches the conclusion of its fiscal year, the focus will shift towards implementing its strategic initiatives to sustain growth and manage regulatory impacts, setting the stage for the release of its full-year results on August 13, 2026.
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