The Rank Group will see operating profits drop by £40m following the UK government’s decision to nearly double remote gaming duty. Rachel Reeves, the Chancellor of the Exchequer, delivered the Autumn Budget statement on 26 November. The changes hit Rank’s digital operations hard.
John O’Reilly, Rank Group’s Chief Executive, called the tax increase “a very significant blow to the regulated betting and gaming industry.” The company paid £188m in UK taxes during the year ending 30 June 2025. That tax bill now jumps by an additional £40m.
But there’s a small consolation. The government abolished bingo duty, which gives Rank a £6m benefit. This helps offset some of the new tax burden, though not nearly enough to balance the scales.
Why This Budget Change Reshapes UK Gaming Economics
The government raised Remote Gaming Duty from 21% to 40%. That’s not a minor adjustment. It’s a fundamental shift in how much operators pay on digital gaming revenue.
Westminster expects this move to generate £1.1bn by 2029-30. The RGD increase takes effect in April 2026, giving operators limited time to adapt their business models.
A separate online sports betting duty arrives in April 2027 at 25%. This new tax excludes self-service betting terminals, spread betting, pool bets and horse racing. The carve-outs create a complex tax structure across different gambling products.
What Rank Group Plans Next
The company started reviewing “various mitigating actions” for its UK digital operations immediately after the budget announcement. O’Reilly acknowledged they’ll “look to mitigate the impact where possible.”
Rank reported £44.6m profit after tax in the year to 30 June 2025. The new tax burden represents a massive chunk of that profitability. The company must now decide how to maintain viable operations under the new regime.
Other budget measures landed closer to expectations. The 4.1% increase in National Minimum Wage and employment tax changes fell within Rank’s forecasts. These weren’t surprises.
How This Alters Rank’s Strategic Direction
Rank will report interim results for the six-month period ending 31 December on 29 January. The company’s reviewing mitigation strategies in the context of “profitability, investment plans and the competitive landscape.”
This timing matters. Investors will see how Rank plans to maintain margins before the tax increases hit.
The bingo duty abolition helps land-based venues sustain jobs and investment. O’Reilly praised this element of the budget. It protects a portion of Rank’s business from the digital sector squeeze.
John H. Ott took over as Chair on 17 November, just days before this budget landed. He inherits immediate pressure to guide Rank through significant regulatory headwinds in its home market.
