Grosvenor Casinos owner warns of £9m tax hit after Healey’s gambling duty hike

Casino operator Rank Group has warned that John Healey’s gambling tax hike will deliver a hit of around £9m a year, as the industry begins to count the cost of Wednesday’s Budget. The London-listed owner of Grosvenor Casinos and Mecca Bingo said the increase in Machine Games Duty (MGD) from 20 to 25 per cent, which takes effect in April 2027, would add approximately £9m to its annual tax bill before any measures to offset the impact. Rank expects an additional £2m in costs during its current financial year, ending June 2027, but said it remained confident of delivering like-for-like operating profit in line with expectations. The company said it would provide further details of the Budget’s impact and its plans to mitigate the costs alongside its half-year results on 28 January. Gambling firms count the cost Rank’s warning comes a day after gambling stocks rallied on relief that the Chancellor had opted for a smaller tax increase than many in the industry had feared.