Having closed three casinos, Rank warns of more if Machine Games Duty increases
Rank has warned that a proposed rise in Machine Games Duty could force further casino closures after shutting three venues in the last quarter.
British operator Rank closed three casinos in Swansea, Reading Central and Sunderland during the quarter, saying they were no longer economically viable in the medium term. Chief Executive Richard Harris said any increase to Machine Games Duty would raise costs, reduce venue viability, cause closures and job losses, lower tax receipts and stop investment. He noted HM Treasury accepted similar economic arguments last year.
Rank reported first-quarter group revenue up 5% to £216.1m, with online gaming up 6% and land-based up 5%. Gaming machine revenue rose 14%, table gaming 3% and electronic gaming 5%. Enracha venues posted 7% like-for-like net gaming revenue growth, helped by 11% electronic gaming growth, while Mecca LFL NGR was flat. Customer visits fell 3%, with spend per visit up 3%.
Digital LFL NGR grew 6%, including 6% growth in the UK and 7% online growth for Mecca. International Digital NGR rose 4%, and Grosvenor venues LFL NGR rose 6%, with visits up 1% and spend per visit up 5%. Rank said it was confident of delivering full-year group LFL operating profit in line with market expectations under the current UK tax regime.
