Key facts
- Rank Group, owner of Mecca Bingo and Grosvenor Casinos, warns that a potential £460 million gambling tax hike could threaten UK bingo halls.
- CEO Richard Harris stated that increased Machine Games Duty (MGD) would impact venue viability and lead to closures.
- Rank Group paid over £225 million in taxes last year.
- The company reported a 5% increase in gaming revenue to £835 million for the year to June, though pre-tax profit fell 15% to £39 million.
- Gaming machine revenue at Mecca Bingo jumped by 6%, accounting for 42% of the business's gaming turnover.
Rank Group, the owner of Mecca Bingo and Grosvenor Casinos, has warned that a proposed £460 million increase in gambling taxes could threaten the future of bingo halls across the UK. Richard Harris, CEO of Rank Group, stated that such a tax hike, potentially increasing the tax on slot and fruit machines from 20% to 40%, would impact venue viability and could lead to closures.
Harris emphasized that the gambling industry is a significant contributor to the UK economy, having paid over £225 million in taxes last year. He expressed concern that proposals from anti-gambling campaigners could harm a regulated industry that supports jobs and provides hospitality experiences.
The company is focusing on increasing revenue from its digital machines and electronic gaming offerings at its Grosvenor Casino and Mecca Bingo sites. Rank Group reported a 5% increase in gaming revenue to £835 million for the year ending June, although pre-tax profit decreased by 15% to £39 million, partly due to a £7.5 million impairment charge related to gaming machines.
Grosvenor Casinos generated an average of £7.6 million in gaming revenue per week, operating approximately 50 venues. Rank Group has also been actively trimming its estate of Mecca bingo halls, aiming for a more streamlined and competitive portfolio. Gaming machine revenue at Mecca saw a 6% increase, now representing 42% of the business's total gaming turnover.