Mecca Bingo owner Rank hit by £6.2m payment fraud in Spanish arm

Casino and Mecca Bingo firm Rank revealed its Spanish business has been the victim of a 7.1 million euro (£6.2 million) payment fraud.

Shares in FTSE 250-listed Rank tumbled by up to 9% in Monday morning trading after it warned over the impact on its businesses in Spain – Enracha and Yo.

Maidenhead-based Rank said: “The group has reported the matter to the relevant law enforcement agencies and is supporting their investigations, as well as carrying out its own internal investigation with the help of an external law firm.”

It added that the financial hit would be disclosed as an exceptional and separate item in its 2025/26 results.

The fraud marks the latest blow for the firm after the autumn Budget confirmed an increase in remote gaming tax from 21% to 40%, which the firm warned last month would lower its annual earnings by around £46 million.

It said this would be offset a little by the £6 million benefit of the Government’s move to ditch bingo duty, but still leaving it with a £40 million earnings impact.

The firm will report interim results on January 29.

Despite the Budget tax hit, Rank said in August it had been boosted by recent investments to improve its product offering and customer risk management, which it expects to accelerate further following new reforms for casino venues, which were outlined by the Government over the summer.

The reforms include easing restriction on the number of gaming machines and sports betting within casinos. Rank said it expected to bring an extra 850 gaming machines into venues this year as a result.

Greg Johnson, an analyst at Shore Capital, said it was not lowering its profit outlook given the payment fraud was being treated as exceptional.

He said interim results were set to show “continued strong momentum and the first benefits from land-based casino reform, which we believe is transformational to the outlook for Rank”.