Rank Group forecasts stronger FY26 profit despite UKGC settlement provision

Rank Group expects underlying operating profit of at least £76 million (US$102.1 million) for the year ended 30 June 2026, above previous market expectations of £63.7 million, despite taking a £5 million provision for a proposed UK Gambling Commission (UKGC) settlement.

The operator, which owns Grosvenor Casinos, Mecca Bingo, Spain’s Enracha Casinos and a UK-facing digital business, said like-for-like net gaming revenue (NGR) increased 6% year-on-year to approximately £834.1 million (US$1.12 billion) during the financial year. Fourth-quarter like-for-like NGR also rose 6% to £208.9 million.

All four business segments recorded year-on-year revenue growth. Grosvenor Casinos generated £397.3 million ($533.5 million) in full-year NGR, up 5%, while fourth-quarter NGR increased 3% to £98.3 million.

Rank’s digital division posted the highest growth, with FY NGR rising 8% to £248.5 million ($333.7 million). Fourth-quarter digital NGR accelerated to 12% growth, reaching £63.9 million.

Mecca Bingo reported full-year NGR of £143.0 million ($192.0 million), up 4%, with fourth-quarter revenue also increasing 4% to £35.4 million.

In Spain, Enracha Casinos posted FY NGR of £45.3 million ($60.8 million), a 7% increase, while fourth-quarter NGR rose 6% to £11.3 million ($15.2 million).

Enracha’s performance comes after Rank disclosed that its Spanish business was the victim of a €7.1 million ($8.2 million) payment fraud in December 2025. The company said at the time it had reported the incident to law enforcement authorities and launched an internal investigation with support from an external law firm.

Rank noted that performance at both Mecca Bingo and Enracha Casinos was in line with expectations and said it maintained tight control of operating costs across the group. It also confirmed it will include a £5 million provision in its FY26 accounts relating to a proposed settlement with the UK Gambling Commission.

The settlement follows preliminary findings from the regulator’s review of Grosvenor Casinos Limited’s operating licence, covering compliance issues between 1 November 2024 and 1 May 2025.

The company submitted its settlement proposal on 20 May, offering a £5 million ($6.7 million) payment in lieu of a financial penalty. Rank said the amount was calculated using gross gambling yield and the Gambling Commission’s revised penalty guidance introduced in October 2025.

The operator is awaiting formal confirmation from the regulator and said remedial measures have been substantially implemented while engagement with the Commission remains constructive.

Gaming machine revenue remained a key growth driver for Grosvenor Casinos, increasing 12% in the fourth quarter compared with 10% growth in the third quarter. 

Rank attributed the improvement to optimisation initiatives and the addition of approximately 850 gaming machines across its estate during the first half of the financial year, following UK regulatory changes introduced in July 2025 that allowed casinos to increase machine numbers.

The expansion increased the group’s machine estate by around 60%, with Rank describing gaming machine revenue growth as a significant long-term opportunity.

Rank’s digital division continued to perform strongly despite the UK government’s increase in Remote Gaming Duty (RGD) from 21% to 40%, which took effect on 1 April 2026. The operator said it maintained investment in performance marketing and customer incentives while reducing above-the-line marketing spend, supplier costs and headcount to offset higher taxation and protect margins.

“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,” said Richard Harris, Rank’s Chief Executive Officer.

Rank reaffirmed its medium-term target of generating at least £100 million ($134.3 million) in operating profit and said it will publish its preliminary results for the 2025/26 financial year later this summer.