Shares in the Mecca Bingo and casino operator Rank Group tumbled sharply after the company revealed it had fallen victim to a multi-million pound payment fraud at its Spanish businesses.
Financial Impact and Share Price Reaction
The FTSE 250-listed firm disclosed a €7.1 million (£6.2 million) payment fraud affecting its Spanish ventures, Enracha and Yo. The news triggered an immediate sell-off, with the company's stock plummeting by as much as 9% during Monday morning trading on 22 December 2025.
Rank, which is headquartered in Maidenhead, confirmed the financial hit would be recorded as an exceptional item in its results for the 2025/26 financial year. The group stated it has reported the incident to the relevant law enforcement agencies and is supporting their investigations.
An internal probe is also underway, assisted by an external law firm.
A Further Setback for the Gaming Giant
This fraud represents another significant challenge for Rank in recent months. The company had already warned that its earnings would be substantially impacted by changes to gaming tax announced in the autumn Budget.
The increase in remote gaming duty from 21% to 40% is expected to reduce annual earnings by around £46 million. This will be partially offset by a £6 million benefit from the scrapping of bingo duty, leaving a net negative impact of approximately £40 million.
Future Outlook and Analyst View
Despite the fraud, analyst Greg Johnson of Shore Capital said his firm is not reducing its profit forecast for Rank, as the loss is being treated as an exceptional one-off event. He expects the company's interim results, due for publication on 29 January, to show "continued strong momentum".
Johnson also highlighted the potential first benefits from recent UK land-based casino reforms, which he believes are "transformational to the outlook for Rank". The government's proposed summer reforms include relaxing limits on gaming machines and sports betting within casinos.
As a result, Rank plans to introduce an additional 850 gaming machines across its venues this year. The group, which originated from the businesses created by Hull's J. Arthur Rank, said in August that recent investments in its product portfolio and customer risk management were paying off, a trend it expects to accelerate following the regulatory changes.
