Rank Group Warns of Venue Closures and Job Losses from Proposed Machine Games Duty Rise
Greta Krause · Sep 28, 2026
Rank Group Warns of Venue Closures and Job Losses from Proposed Machine Games Duty Rise
The Rank Group, owner of Grosvenor Casinos and Mecca Bingo, has warned that a proposed increase in Machine Games Duty from 20% to 40% could force the closure of roughly one-third of its venues while placing around 2,000 jobs at risk. The company employs approximately 6,667 people across its UK operations, and the potential cuts would represent 30% of that workforce, with sites in northern England facing particular exposure. Company leadership delivered the assessment ahead of the next government Budget, noting that the tax change would render large portions of the existing estate unviable under current operating conditions.
Details of the Proposed Tax Change
Under the plan under consideration, Machine Games Duty would double from its present 20% rate to 40% on gaming machines located in casinos and bingo halls. Rank Group executives have calculated that the higher rate would eliminate profitability at multiple locations because machine revenue already faces pressure from rising operational costs and earlier regulatory adjustments. The company operates a network of venues that rely heavily on these machines for income, and the sudden doubling of the duty would exceed the margin available at lower-performing sites.
Statement from Rank Group Leadership
CEO Richard Harris explained that the proposed hike would make swathes of the estate unviable, triggering closures that carry wider social and economic consequences for the communities involved. The statement highlights that many venues serve as local employment hubs and social spaces, especially in northern regions where alternative job opportunities remain limited. Harris noted the timing follows recent tax adjustments, including the remote gaming duty increase scheduled for April 2026, along with ongoing cost inflation and previous rounds of venue rationalisation.
Context of Recent Industry Pressures
Rank Group has already navigated several rounds of closures and cost reductions in prior years, yet the latest proposal arrives while the operator continues to absorb higher energy prices, staffing expenses, and compliance requirements. The April 2026 remote gaming duty adjustment adds another layer of financial strain for companies with both land-based and online operations. Observers note that the combined effect of these measures could accelerate consolidation across the sector, concentrating activity at larger, higher-margin sites while smaller regional locations face elimination.
Northern England locations appear especially vulnerable because many of these venues record lower average machine revenues per terminal compared with southern counterparts. Data compiled by the company indicates that roughly one-third of the total estate operates close to break-even, leaving little room for an additional 20-percentage-point duty increase. Should the Budget proceed with the change, Rank Group anticipates a phased programme of closures beginning in the months after implementation, with the 2,000 positions eliminated through a combination of redundancies and natural attrition.
Broader Economic and Social Considerations
Local economies surrounding the affected venues would experience secondary effects from reduced footfall in adjacent retail and hospitality businesses. Employees facing redundancy would join an existing pool of workers displaced by earlier industry contractions, while some communities would lose established social facilities that have operated for decades. The company has emphasised these ripple impacts in its communications with government officials, underscoring that venue viability depends on maintaining a tax structure aligned with current revenue levels.
Timeline and Next Steps
The warning precedes the autumn Budget cycle, during which Treasury officials will finalise fiscal measures for the coming year. Rank Group has requested engagement with policymakers to illustrate the specific financial modelling behind the projected closures. No final decision on the Machine Games Duty rate has been announced, and the company continues to operate its full portfolio while monitoring developments. Additional clarity is expected once the Budget statement is delivered, at which point operators will assess the precise scope of any adjustments required.
Conclusion
The Rank Group statement provides a direct assessment of how the proposed Machine Games Duty increase would affect one major operator's UK footprint. The figures released—approximately one-third of venues and 2,000 positions—quantify the scale of potential restructuring if the 40% rate is adopted. Stakeholders across government, local authorities, and the gambling sector now await the Budget outcome to determine whether the duty adjustment proceeds and what mitigation measures, if any, might accompany it.