Rank Group Online Gambling Division Still Growing

Published: Friday, July 31, 2009 Online-Casinos.com

Rank Group which has been a voice for bingo operators in the U.K against the unfair taxation on Bingo in that nation, announced recently that it's first half year profits were in slight decline. Rank's half year resulting decline in it's online division was at 8 percent. Rank Group's sportsbetting subsidiary Blue Square.com suffered the most with a 43 percent drop in revenues. The large company's online bingo operations did a little better, with Rank's websites increasing revenue by a full 12 percent.

Tax changes announced in the 2009 U.K. parliamentary budget are expected to cost Rank Group as mich as 9 million GBP annually. Internet poker remained slow with revenues declining 15 percent and online casino revenues also dropped 8 percent. Future plans for the online division revealed by the management at Rank Group include the launch of GCasino.com, which will be Rank's premier online casino brand.

Chief executive officer of the Rank group, Ian Burke, said, "Rank performed well during the first half of the year, achieving profitable revenue growth in a difficult economic environment and further strengthening the group's balance sheet through debt reduction. We have set out a clear strategy for growth within the UK gaming market, expanding our portfolio of G Casinos, delivering operational improvements in Mecca Bingo and repositioning Rank Interactive to prioritise its gaming websites and meccabingo.com in particular.

"The first half of the year has been marked by a number of positive changes to gaming regulations, resulting from improved understanding between the bingo industry and the Department for Culture Media and Sport ('DCMS').

"However, the volatile nature of HM Treasury's fiscal policy remains the principal challenge for the group. We are disappointed by the government's decision to introduce a significant increase in the taxation of bingo during this year's budget and will continue to give active support to the Bingo Association in its campaign to achieve a fair deal for Britain's licensed bingo clubs." Burke went on to say,"Despite the economic uncertainty, we are encouraged by the progress we have made this year in terms of enhanced customer propositions, a stronger senior management team and the group's financial position. While we remain cautious in the near-term, we look forward with confidence in the long-term prospects for gaming and the success of the group's growth strategy."