Incident adds financial pressure as operator faces UK tax hikes and reviews digital profitability
Rank Group has confirmed that its Spanish-facing operations, Enracha and Yo, have been impacted by a significant payment fraud incident, resulting in losses totalling approximately €7.1m. The disclosure was made to shareholders earlier this week, with the company confirming that both law enforcement authorities and internal investigators are now examining the case.
In a statement, Rank said the fraud has been reported to the relevant agencies and that the group is cooperating fully with official investigations. At the same time, Rank has launched its own internal review, supported by an external law firm, to determine how the incident occurred and to assess whether additional safeguards are required across its payment and operational systems.
“The Rank Group Plc reports that its Spanish businesses, Enracha and Yo, have been the victim of a payment fraud, which in aggregate has totalled approximately €7.1m,” the company said. “Given the exceptional nature of this incident, Rank Group expects to treat the financial impact as a Separately Disclosed Item in relation to its 2025/26 performance.”
The operator confirmed that the fraud-related losses will be disclosed separately in its financial reporting next year, reflecting their one-off and non-recurring nature. The incident comes at a challenging time for Rank’s Spanish digital operations, which had already been experiencing some performance headwinds.
In its first-quarter trading update for the 2025/26 financial year, Rank reported that net gaming revenue from its digital businesses in Spain declined by 1% year-on-year. The group attributed this dip to previously disclosed platform capacity issues. However, Rank indicated that these problems are being addressed, with the launch of a new bingo platform expected to support a return to growth in the coming quarter.
In contrast, Rank’s land-based Enracha venues in Spain continued to deliver positive results. Net gaming revenue from these locations increased by 5% year-on-year, with the group noting that its retail operations remain resilient and are performing well despite broader market pressures.
Beyond Spain, Rank is also preparing for material changes to its cost base in the UK. From April 2026, Remote Gaming Duty is set to rise sharply from 21% to 40%, a move that Rank has described as a major blow to the regulated online gambling sector. As a result, the company has confirmed it will reassess its UK digital operations, focusing on profitability, future investment plans and the competitive environment.
Chief Executive John O’Reilly said the tax increase would significantly impact digital margins, despite the government’s decision to abolish bingo duty providing some relief to the land-based sector. He noted that in the year ended 30 June 2025, Rank reported profit after tax of £44.6m while paying £188m in UK taxes, a burden he said will increase by a further £40m.
Rank is scheduled to publish its interim results for the six months ended 31 December 2025 on 29 January 2026, when further details on the fraud incident and its financial implications are expected to emerge.
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