Impact of the Autumn Budget
Rank Group Plc announced that the UK Autumn Budget 2025 will increase Remote Gaming Duty from 21% to 40%, resulting in an estimated annualised operating profit reduction of approximately £40 million before mitigation, offset by a £6 million benefit from the abolition of Bingo Duty. The company is reviewing mitigation strategies for its UK Digital business due to this significant tax change, which will also see an additional cost of £5.5 million from the National Minimum Wage increase. Rank Group maintains a strong balance sheet and expects to operate within its financial covenants.
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The Rank Group Plc (LSE: RNK) ("Rank" or "the Group" or "the Company") notes the increase in Remote Gaming Duty ("RGD") and the abolition of Bingo Duty announced in today's UK Autumn Budget 2025 statement, effective from April 2026. The total annualised impact of these additional costs on the Group's operating profit is a reduction of c.£40m before mitigation.
The c.£40m additional cost comprises:
| · | the annualised impact on the UK Digital business of the increase in the rate of RGD from 21% to 40% which will be an additional duty cost of c.£46m (2024/25: underlying LFL operating profit £33.3m; UK-only underlying LFL operating profit c.£25m); |
| · | offset by the c.£6m benefit arising from the abolition of bingo duty. |
The Group is reviewing various mitigating actions for the UK Digital business in the context of our profitability, investment plans and the competitive landscape, which will inevitably be impacted as a result of the tax changes announced by the Chancellor.
The impact of the 4.1% increase to the hourly National Minimum Wage to £12.71, representing an additional cost impact of c. £5.5m, along with other changes to employment taxes, are within the Company's expectations.
The Group has a strong balance sheet and expects to operate well within its financial covenants.
John O'Reilly, Chief Executive of Rank, said:
"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.
"In the year to 30 June 2025, Rank reported a profit after tax of £44.6m and paid taxes in the UK of £188m. That burden will now increase by a further £40m and we will look to mitigate the impact where possible."
Rank Group will announce its interim results for the six months ended 31 December 2025 on 29 January 2026.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.