Rank Group CEO Warns of Venue Closures from Proposed Machine Games Duty Rise

Richard Harris, who serves as CEO of Rank Group, the company behind Mecca Bingo and Grosvenor Casinos, issued a direct warning ahead of Chancellor John Healey’s first budget scheduled for October 28, 2026, and observers note that proposed changes to machine games duty stand to affect bingo halls and casinos across Britain.

The alert centers on a potential doubling of the duty rate from its current level of 20 percent to 40 percent on Category B machines, a move that Harris described as capable of turning established venues into collateral damage, and this development arrives amid ongoing speculation about how the budget measures might reshape the gambling sector.

Details of the Proposed Tax Adjustment

Rank Group operates a network of bingo halls and casinos that rely heavily on slot machines falling under Category B, and Harris pointed out that an increase in machine games duty would raise operating costs substantially while compressing margins that already face pressure from other expenses; those who track the industry recognize that such venues generate significant portions of their revenue from these machines, which means any rate hike flows directly into daily financial calculations.

According to the statement, the higher duty could force decisions on which locations remain viable, and data from similar past adjustments shows that tax burdens often accelerate consolidation or outright closures when revenues do not keep pace, while job losses follow as staffing levels adjust to reduced operations.

Impact on Bingo Halls and Casinos

Bingo halls operated by Rank Group serve local communities with a mix of traditional games and modern slots, yet the proposed duty change targets the slot component that helps subsidize the overall experience, and Harris emphasized that both bingo halls and casinos risk becoming unintended casualties because the tax applies uniformly without distinguishing between venue types or regional differences in footfall.

People familiar with the sector point out that closures would remove not only entertainment options but also employment opportunities in areas where these venues function as steady employers, and the chain reaction could extend to suppliers and local businesses that depend on visitor traffic generated by the halls.

Broader Context Around the Budget Timing

With the budget set for late October 2026, discussions in the preceding months have included various revenue-raising options, and speculation about machine games duty forms one thread in those conversations; Rank Group’s position highlights how a single tax adjustment could ripple through an entire segment of the leisure industry that employs thousands and contributes to regional economies.

Category B machines, which include many of the slots found in both bingo and casino settings, currently attract the 20 percent rate, and any shift to 40 percent would mark a sharp departure from recent levels, prompting operators to reassess investment plans and expansion strategies that were already calibrated to existing tax structures.

Statements from Rank Group Leadership

Harris framed the issue as one of unintended consequences, noting that the venues provide regulated environments for adult gaming while supporting jobs in retail and hospitality roles, and the warning serves as an early signal to policymakers about the downstream effects of duty changes before final decisions appear in the October budget documents.

Those monitoring the situation observe that Rank Group’s portfolio spans multiple formats, which means the same duty increase would apply across diverse sites from high-street bingo halls to larger casino properties, and this uniformity could limit flexibility for operators seeking to offset costs through other revenue streams.

Conclusion

The warning delivered by Richard Harris places the focus squarely on how a proposed machine games duty increase from 20 percent to 40 percent might affect Rank Group’s bingo and casino operations ahead of the October 28, 2026 budget, and the outlined risks include venue closures along with associated job losses that would follow if the higher rate takes effect without adjustments for the sector’s specific circumstances. Further details on the final budget measures will clarify the scope of any changes once they are announced.