Rank Group Cuts Jobs as UK Gambling Tax Soars 40% – What's Next?

Dr. Annelies De Vos · 2026-07-17

Rank Group Plc, the company behind Grosvenor Casinos, Mecca Bingo, and Spain's Enracha Casinos, just confirmed it's cutting jobs. The reason? A massive tax hike on remote gambling in the UK. The government raised the Remote Gaming Duty (RGD) from 21% to 40% back in April 2026, following the 2025 Autumn Budget. That's almost double the old rate, and it's forcing operators like Rank to find savings wherever they can. While the company hasn't shared exact numbers yet, these staff reductions are part of a bigger plan to protect profits and keep growing. It's a tough spot for any business, especially one that relies on a mix of physical casinos and online platforms. But Rank isn't just cutting costs—they're also looking at ways to expand, especially in markets like Spain where the tax environment is friendlier. ### Why the Tax Hike Hit Hard The UK's decision to bump up the RGD wasn't a surprise to everyone in the industry, but the size of the increase caught many off guard. For Rank, which operates both land-based and online gambling, the tax now eats into margins that were already tight. Online gambling, which had been growing fast, suddenly became a lot less profitable under the new rate. Compare this to the US, where online gambling taxes vary by state but often sit below 20%. In the UK, the 40% rate makes it one of the highest in Europe. Operators like Rank have to decide whether to pass costs to players, cut expenses, or do a bit of both. So far, they're leaning on cost cuts, starting with jobs. ### What This Means for Players If you're a regular at Grosvenor Casinos or Mecca Bingo, don't expect things to change overnight. Rank is focusing on operational efficiency, which means you probably won't see big changes in your experience. But over time, higher taxes could lead to fewer promotions or tighter bonuses. It's the same story across the industry—operators are tightening belts. - Expect fewer free spins or deposit matches from UK-facing sites. - Bonuses might come with higher wagering requirements. - Some smaller operators may even leave the UK market entirely. For now, Rank is sticking with its strategy of balancing cuts with growth. They're not just firing people—they're also investing in new tech and markets where taxes are lower. ### Rank's Global Moves Rank isn't putting all its eggs in one basket. While the UK gets tougher, they're expanding in Spain through Enracha Casinos. Spain's gambling tax is around 20%, much lower than the UK's new 40%. That makes it a smarter place to invest for growth. This kind of geographic diversification is smart. It lets Rank weather the storm in one market while building up in another. For US readers, think of it like a company opening stores in states with lower corporate taxes while trimming costs in pricier ones. ### The Bigger Picture for Gambling Taxes This isn't just a Rank story—it's a trend. The UK government is using taxes to control gambling behavior, especially online. The idea is that higher taxes reduce problem gambling by making operators less aggressive with promotions. But critics say it just pushes players to unregulated sites where there's no protection at all. For operators like Rank, the math is simple: higher taxes mean lower profits. So they cut jobs, slow down marketing, and look for cheaper ways to run their business. It's a cycle that's playing out across Europe, and it could eventually hit the US too if states decide to raise their own online gambling taxes. ### What to Watch Next Rank's next step will be telling. If they can grow revenue in Spain and other markets while cutting UK costs, they might come out stronger. But if the UK tax hike hurts too much, expect more job cuts and maybe even a sale of some assets. For now, the focus is on keeping the ship steady. Richard, the company's CEO, hasn't said much beyond the official statement. But insiders suggest the cuts are just the beginning of a broader restructuring. ### Final Thoughts Tax hikes in the UK are reshaping the gambling industry, and Rank Group is right in the middle of it. Job cuts are never good news, but they're often a necessary evil when governments change the rules. The real question is whether Rank can balance short-term pain with long-term growth. If you're following this industry, keep an eye on Spain and other European markets. That's where the next chapter will be written. And if you're a player, just know that the days of generous bonuses might be numbered—at least in the UK.