26th Nov 2025 17:06
LEI: 213800TXKD6XZWOFTE12
26 November 2025
The Rank Group Plc
Impact of the Autumn Budget
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);
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· | 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.
Ends
Contacts:
Rank
David Williams - Director of Corporate Affairs & Investor Relations [email protected]
FTI Consulting LLP (PR adviser to Rank)
Edward Bridges Tel: +44 20 3727 1067
Alex Beagley Tel: +44 20 3727 1045
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