In its recent trading news, the Rank Group has highlighted a significant 6% year-on-year increase in income for the third quarter, reaching an impressive £182.3 million. This growth trajectory shows the company’s solid performance across its digital and land-based gaming sectors.

Land-Based Revenue Overview

The Grosvenor venues continue to lead in terms of revenue generation for the Rank Group. Despite showing a modest growth rate of 3% in Q3, these venues remain a cornerstone of the company’s revenue stream. The increase in visitor numbers by 5% has contributed to a notable 2% rise in average weekly net gaming revenue (NGR) at Grosvenor, aligning with Rank’s strategic goal of achieving £7.0 million weekly NGR from its Grosvenor venues business.

On the other hand, the Mecca bingo venues have experienced a remarkable 12% earnings surge. This growth can be attributed to a combination of increased visitor numbers, which rose by 5% from last year, and a substantial 7% rise in spending per visit. Notably, this surge in gain coincided with strong trading periods during Mother’s Day and Easter weekends, indicating robust consumer engagement with Mecca’s offerings.

The Rank Group’s success extends beyond the UK, with its Enracha venues division in Spain witnessing a commendable 9% revenue increase, amounting to £10.0 million. This international growth underscores Rank’s ability to capitalize on diverse market opportunities and expand its global footprint.

Digital Growth and Operational Enhancements

Digital revenue saw a significant uptick of 6%, totaling £55.0 million in Q3. The UK digital sector experienced a 4% revenue increase, while Spain witnessed an impressive 20% year-on-year growth. Mecca’s digital net gaming revenue (NGR) surged by an impressive 21% in the UK, showcasing the strong performance of its digital gaming offerings. However, Grosvenor’s digital NGR saw a marginal 1% rise, attributed to a weaker gaming margin stemming from significant customer wins.

To further enhance its digital operations, Rank implemented a new content management system for its Mecca and Grosvenor online platforms during Q3. This system aims to improve operational efficiency and facilitate rapid market responsiveness for customer proposition enhancements.

Looking at the year-to-date performance, Rank Group’s income for the nine months ending in March reached a substantial £544.9 million, marking an impressive 8% increase compared to the previous year. This robust performance is driven by the continued growth of Grosvenor and Mecca venues, along with positive digital revenue trends.

As the fiscal year progresses, Rank anticipates that its strong performance will persist, with operating profit expected to align with market expectations for the year ending June 30. This outlook is bolstered by ongoing operational enhancements and strategic initiatives aimed at maximizing revenue potential.

CEO John O’Reilly said: “We continue to make good progress across both our venues and online businesses. Q3 trading is very much in line with the board’s expectations. Performance continues to improve. We have the very important land-based reforms from the government’s white paper to look forward to, which we hope to start implementing in the coming months.”

Stake Sale in Passion Gaming

Rank has announced its decision to divest its stake in Passion Gaming, an Indian online rummy business. While the financial terms of the deal remain undisclosed, Rank has emphasized that the transaction represents a significant strategic move for the company’s portfolio optimization.

Source: ”Spain and Mecca Bingo revenue surges as Rank hails Q3 progress”, igamingbusiness.com, April 18, 2024.

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The Rank Group released its latest interim results, uncovering details regarding its progress over the six months ended December 31, 2023. The company referred to the period as H1 2023/24, with results pointing to an increase in net gaming revenue (NGR) year-over-year. Besides financial data, Rank Group released details regarding its expectations for 2024 in key markets.

Focusing on the UK, John O’Reilly, the company’s chief executive, explained that the business is positioned well for further growth, boosted by the upcoming regulatory changes within the retail gambling sector in the country. The changes are expected to come into effect at some point this year, according to the company, possibly around the summer. “These reforms cannot come soon enough in enabling us to modernize our proposition to better meet our customers’ expectations,” added O’Reilly.

“We are well positioned to optimize the opportunities afforded by the UK Government’s planned land-based regulatory reforms which will hopefully be implemented through the passing of secondary legislation in the summer of 2024.“

John O’Reilly, chief executive of The Rank Group

Last year, the Gambling Act review white paper was released, outlining a number of suggestions that are expected to completely overhaul the gambling industry across the country. Among the proposed changes are the implementation of limits for online slots, changes in the ratio of B and C gambling devices, as well as implementation of affordability checks, among other improvements.

Yet, so far the government hasn’t set a deadline for the implementation of the changes, while consultations with stakeholders on certain topics are still ongoing. Ultimately, the review of the Gambling Act 2005 is expected to ensure that the laws in the country fit the digital age.

The Company Posts Strong Results Despite Challenges

When it comes to financial results, Rank Group posted £362.6 million ($460 million) in NGR for H1 2023/24. This figure, compared to the £338.9 million ($430 million) reported for the corresponding period a year ago, showed an increase of 7%. Additionally, Rank Group confirmed that its operating profit for the latest trading period was £16.2 million ($20.6 million).

“Whilst it remains a challenging economic environment, we are positive about the future and expect LFL operating profit for the year ending 30 June 2024 to be in line with our expectations,“

reads a statement released by The Rank Group

While the company acknowledged that the economic environment remains challenging, it was still optimistic about its future performance. Rank Group said that it anticipates its upcoming financial results for the year ending June 30, 2024, to coincide with its initial expectations.

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Gambling industry representatives have once again appeared at the top of The Sunday Times’ Tax List. The 2024 edition of the list shows that the owners of Betfred and bet365 occupy two of the five top spots.

Outclassing celebrities such as Harry Potter author J.K. Rowling (31st place) and singer Ed Sheeran (32nd place), Fred and Peter Done and the Coates family stood in fourth and third place respectively.

According to the list, the Done brothers paid £204.6 million ($259.4 million) in taxes to the UK government. The Coates, meanwhile, paid almost two times that, with their contributions standing at £375.9 million ($476.5 million). In total, the two gambling families contributed £580.5 million.

This is not the first time the Coates have appeared at the top of the list of Britain’s highest-paying taxpayers. Denise Coates, for example, was singlehandedly the highest taxpayer in 2019 when she paid £276 million in taxes to the government. She was also the highest taxpayer in 2021, despite a significant pay cut that year.

For reference, bet365 was the second biggest taxpayer in the UK last year and was only outclassed by the Moscow-born billionaire Alex Gerko.

Russian-Born Billionaire and F1’s Ex-Boss Took the Top Spots

The Coates family no longer holds the top spot, although the company continues to see its profits increase. Unfortunately, bet365’s success is offset by some significant operating losses that were attributed to higher spending.

Betfred, on the other hand, has not yet disclosed its FY 2023 financials, although its presence on the list suggests growth. This is further supported by its launch in new jurisdictions and the introduction of a new Mohegan Sun sportsbook in Las Vegas.

Despite the gambling families’ significant contributions, Bernie Ecclestone, the former chief executive officer of the Formula One Group, and Alex Gerko, the owner of the algorithmic trading company XTX Markets took the first two spots. Ecclestone, who was recently involved in legal trouble, had to pay £652.6 million ($827.3 million) in taxes. Gerko, on the other hand, paid £664.5 million ($842.4 million) in UK tax, which earned him the top spot on The Sunday Times’ list.

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Gambling company with a strong focus on building a one-of-a-kind mix of player experiences, digital channels, and branded venues in the United Kingdom and Spain, Rank Group, has been criticized by the Advertising Standards Agency (ASA) in regard to a challenging Instagram post from Mecca Bingo. 

The latter, which is the group’s community gaming brand aimed at the British market, has been accused of publishing a post consisting of two photos that allegedly suggested that gambling could “enhance a person’s self-image or self-esteem.”

Complaints From the Public

The post, which showcased popular drag queen, Baga Chipz, and was originally published on April 16, sparked controversy online while also attracting two complaints. 

The first image of the post showed Baga Chipz dressed in a plain and dark outfit, with no makeup on and showing a serious face. The second photo showed the drag queen in a completely different mood, smiling, holding a glass of champagne, and wearing a full face of makeup.

The post was accompanied by a series of hashtags including #bingo, #winning, #feelinggood, and #winningfeeling as well as a text that read “Before playing Mecca Bingo vs after playing Mecca Bingo.”

The same post reprimanded by the AGA was accompanied by the caption “A good game can transform you! Don’t you just love that post-bingo glow?”

The two complaints from the public challenged whether the purpose of the post was to suggest that gambling may improve the self-esteem and self-image of a person, which would have deemed its message irresponsible.

The ASA Ruled the Public Complaints Were Founded

While assessing the complaints, the watchdog established that the Instagram post together with its caption and hashtags, could imply that a person would be able to achieve a higher self-image by engaging in bingo gameplay, as well as by winning.

The agency ASA also ruled that some viewers might interpret the use of Baga Chipz as a reference to drag queens in general, as explained by the operator itself while emphasizing that the “overall impression” of the post would suggest that gambling could improve a person’s self-esteem and self-image.

Accordingly, the body asked Rank Group to not display the ad again while asking them to make sure that their upcoming marketing communications will not fall into the same rabbit hole. 

Rank Group acknowledged the ad might have been interpreted the wrong way when viewed by someone who did not understand the “full context” while adding that the purpose of the post was “very evidently light-hearted.”

Mecca Bingo further explained the post was used to convey the message that their services were “fun and entertaining” and that the term “good game” was aimed at the positive experience and atmosphere tied to the brand. Last month, the group announced inking an agreement with Pragmatic Play for their live casino games after it extended its long-term partnership with Kambi in August.

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The leading provider of casino content, Pragmatic Play, announced it extended its partnership with the leading group that has a strong footprint across the gambling sector in Europe, Rank Group. Announced Thursday, the latest collaboration sees the iGaming content developer, agree to supply Rank Group with thrilling games from its live casino vertical.

The latest deal represents a partnership extension for the duo. This is because Pragmatic and Rank Group initially joined forces four years ago. At the time, Pragmatic agreed to deliver its slots games, powering the operator’s offering with engaging titles that stand out with quality graphics and features.

Now, under the new partnership extension, Rank Group’s operators in the UK, Mecca Bingo and Grosvenor Casinos, will be able to provide engaging live casino games from Pragmatic. The aforementioned operators are among the most popular gambling companies in the UK. Thanks to the recent agreement, Grosvenor Casinos and Mecca Bingo will expand the offerings available to their clients.

Per the terms of the new deal, customers of the two operators will be able to access player-favorite live casino titles from Pragmatic Play. Such include Vegas Ball Bonanza and Sweet Bonanza CandyLand, among other hit games renowned for their immersive gameplay and quality.

Recently, Pragmatic signed another similar deal with Napoleon Sports and Casino. Under the terms of that partnership, the iGaming content supplier agreed to deliver its live casino games, powering the operations of the market-leading gambling operator in Belgium.

Rank Group Is Excited to Continue Its Partnership with Pragmatic

Cyrus Moreno, Rank Group’s head of gaming, spoke with excitement about the recently extended agreement with Pragmatic. He said that it is thrilling to see more games from the leading provider power the company’s brands. Additionally, Moreno acknowledged the exceptional success Pragmatic’s slots enjoyed over the last few years.

Moreno pointed out: “The Live Casino offerings are sure to also be high-performers with multiple acclaimed titles in the portfolio.” Finally, he said that Rank Group is looking forward to the success the new partnership will bring.

“We’ve seen success with Rank Group for over four years, and we’re thrilled to now be bringing premium Live Casino content to complement the success of our Slots offering across their top brands.“

Irina Cornides, chief operating officer at Pragmatic Play

Irina Cornides, Pragmatic Play’s chief operating officer, was similarly delighted with the extended deal with Rank Group. She spoke about the success the collaboration between the duo brought over the last four years.

Cornides added that Pragmatic is now thrilled to expand this successful partnership by bringing its premium live casino content and complementing the offering of the two brands. Last but not least, the chief operating officer said that Pragmatic is excited to contribute toward the success of Rank Group for years to come.

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The leading gaming and entertainment company, The Rank Group Plc, released its latest preliminary results revealing details regarding its performance for the 12 months ended June 30, 2023. The recent financial report emerged Thursday and reveals that while net gaming revenue for the period increased, a decrease in the operating profit was observed.

Overall, Rank posted a group underlying like-for-like (LFL) net gaming revenue (NGR) of £679.7 million ($866.5 million). This result, when compared to the corresponding period for 2021/2022, when NGR halted at £633.2 million ($807.3 million), represented an increase of 7%.

While NGR in 2022/2023 increased based on the preliminary results, Rank’s underlying LFL operating profit marked a decrease. The company revealed that underlying LFL operating profit for the 12 months ended June 30, 2023, halted at £20.3 million ($25.9 million). This result, marked a 52% year-over-year decrease when compared to the £42.5 million ($54.2 million) result from 2021/2022. Although Rank acknowledged that this result marked a decrease when compared to the prior period, it said that the latest figure was “in line with the upgraded guidance provided in April 2023.”

The Company Remains Optimistic, despite the Difficult Operating Environment

John O’Reilly, The Rank’s chief executive, acknowledged that despite the challenging environment in the last few years, the company has seen an uptick in the visitation of its Mecca and Grosvenor venues. He said that the figures from the second half of the trading period showed an uptick in business volumes.

O’Reilly spoke about the difficulties high wage inflation, increased energy costs and tightening of regulations brought for the company in the UK. However, he noted that those negative effects of the operating environment are fading away, which leaves Rank optimistic.

“However, energy costs have stabilized, inflation appears to now be easing, customers continue to slowly return to both our Grosvenor and our Mecca venues and we now expect to deliver good levels of revenue and profit growth.“

John O’Reilly, chief executive of The Rank Group Plc

Further details released by Rank reveal that its Digital underlying NGR for the recent trading period hit £202.9 million ($258.6 million), up by 10% when compared to the £183.8 million ($234.3 million) result from the 2021/2022 period.

Similar growth was observed for the company’s Venues underlying NGR. Overall, Rank’s Venues posted £476.8 million ($607.8 million) in underlying LFL NGR this year. Comparing this result year-over-year to the £449.4 million ($572.8 million) reported for the 2021/2022 period shows that this year, an increase of 6% was observed.

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Kambi, a B2B provider of sports betting services, has extended its existing agreement with Rank Group, one of its most loyal partners. As a result, the former party will continue to leverage Kambi’s reliable sportsbook products and services.

Since 2016, Kambi has supplied Rank Group with a number of services, including tracking powered by artificial intelligence, a bet builder tool and a horse racing product.

Rank Group relies heavily on Kambi when it comes to sports betting, as attested by their long-standing partnership. In addition, Rank Group has launched three sports betting brands on the Kambi platform, including Grosvenor Sport, Enracha and the recently-launched Spanish sportsbook YoSports.

The agreement between Kambi and Rank Group comes two months after the former company extended its sportsbook partnership with LeoVegas, another big gambling and betting operator. Last month, the company also expanded in Brazil where it agreed to power the launch of Eyas Gaming’s Lance! Betting brand.

Rank Group Trusts Kambi When It Comes to Sports

Speaking of the extension of the partnership with Kambi, Rank Group’s director of sports, Tom Orton, said:

With Kambi’s support, we have driven 80% growth in our Grosvenor sportsbook revenues over the past 12 months and are excited about what this extended partnership has the capacity to deliver.

Tom Orton, director of sports, Rank Group

Orton added that Rank Group aspires to be fans’ sportsbook operator of choice. He believes that the partnership with Kambi will turn this dream into a reality.

Kambi’s co-founder and chief executive officer, Kristian Nylén, also expressed his thoughts on the arrangement. He said that his team is “very proud” to have solidified its partnership with Rank Group. According to Nylén, Kambi is looking forward to providing the operator’s outstanding sports betting brands with sportsbook content and solutions.

One of the gaming industry’s leading operators, Rank has long been a valued Kambi partner and we look forward to empowering their sports betting ambitions in the years to come with our complete sportsbook.

Kristian Nylén, co-founder & CEO, Kambi Group

In other news, Kambi recently published its Q2 results, demonstrating a strong performance across many metrics. The period was described as “encouraging” by the company, which managed to sign multiple agreements with tier-one partners.

Two months ago, Kambi solidified its presence in Sweden by securing a B2B permit, in line with the newly-introduced Swedish regulations for B2B companies.

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The latest company to comment on this seminal moment in the UK gambling industry is Rank Group. The company has welcomed the proposals and the forthcoming process of consultation that will collect further input and feedback and arrive at solutions that best reflect the needs of consumers.

Rank Group Weighs In on Digital and Land-Based Changes

Rank Group called itself in support of “striking the right balance” between consumer freedoms and protecting individuals from gambling-related harm. The Group also said that it welcomed the commitment demonstrated in the White Paper and acknowledged that there have been significant changes to the gambling landscape over the past years.

Rank Group, which has 50 casinos, hailed the proposed changes for the land-based sector, which should give the company a more competitive outlook in the age of digital gambling. The Group confirmed that it would continue to keep in touch with the government and the UK Gambling Commission regarding the proposed changes and how they can contribute to the final framework outlined by the White Paper.

Rank Group also welcomed the idea of a statutory levy and said that the government has chosen the right approach in considering the “differing association of different sectors with harm and/or their differing fixed costs.”

Rank Group expects any changes to the gambling industry and its regulatory framework in the United Group to have a positive impact on the Group. Company chief executive John O’Reilly similarly noted:

The public policy changes set out by Government are a constructive set of measures for the future of our industry and provide a firmer foundation for us to invest in our business.

Company chief executive John O’Reilly

Digital Pinch to Be Felt, Net Benefit for Group Anyway

O’Reilly explained that Rank Group would feel the pinch of digital regulation tightening but remained cautiously optimistic about the prospects that the changes revealed ahead of the land-based industry. In net terms, though, the Group stands to benefit, he noted.

“With public policy now set, attention shifts to the timeline for implementing these policy changes. Swift implementation of these much-needed reforms is vital for the land-based sector as we look to meet the needs of today’s consumers whilst continuing to uphold our commitment to safer gambling,” the executive concluded on an upbeat note.

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