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The Rank Group Plc (LSE: RNK) has disclosed the financial impact of tax changes announced in the UK Autumn Budget 2025, with the company facing a total annualised cost of approximately £40 million to operating profit before mitigation measures are implemented.
The financial impact stems from two key budget measures effective April 2026: a substantial increase in Remote Gaming Duty (RGD) and the abolition of Bingo Duty.
Financial Breakdown
The £40 million additional cost comprises an annualised impact on the UK Digital business from the RGD rate increase from 21% to 40%, which will add approximately £46 million in additional duty costs. The company’s UK Digital business reported underlying like-for-like operating profit of £33.3 million in 2024/25, with UK-only underlying like-for-like operating profit of approximately £25 million.
This increase is partially offset by a £6 million benefit arising from the abolition of bingo duty, which will provide relief to the company’s land-based operations.
Employment Cost Impact
Rank Group also faces additional employment costs from the 4.1% increase to the hourly National Minimum Wage to £12.71, representing an additional cost impact of approximately £5.5 million. The company stated that this increase, along with other changes to employment taxes, falls within the company’s expectations.
Management Response
“The announced increase in Remote Gaming Duty in the UK Budget represents a very significant blow to the regulated betting and gaming industry in the UK. Whilst we are pleased that the Government has abolished bingo duty which will help to sustain jobs and investment in the land-based sector, the far more significant impact on the Group is the hit to digital profitability.”
Chief Executive John O’Reilly emphasized the scale of the tax burden, noting that in the year to 30 June 2025, Rank reported a profit after tax of £44.6 million and paid taxes in the UK of £188 million. That burden will now increase by a further £40 million.
Mitigation Strategy
The Group is reviewing various mitigating actions for the UK Digital business in the context of profitability, investment plans and the competitive landscape, which will be impacted by the tax changes. The company maintains a strong balance sheet and expects to operate well within its financial covenants.
Rank Group will announce its interim results for the six months ended 31 December 2025 on 29 January 2026.
Source: The Rank Group Plc
