The Rank Organisation as it was once known was a huge company, however they have chosen to take the route of concentrating their business on gambling, and as such over the last couple of decade have sold off many of their other businesses, and are now known as the Rank Group PLC.
It is their Grosvenor branded land based casinos and their poker rooms, their Mecca chain of bingo clubs and their online gambling sites that now produce their income; however the full year pre-tax profits have just been revealed which show a whopping 40% decrease in income on last year’s figures.
Some of the excuses they have for that massive drop in income were down to the hot weather in the UK, which they believe was the reason why many people stopped visiting their casino and bingo venues; however their online operation was also down by some 7.9%.
The management team have however said that they are urgently putting into place cost cutting measures and will be looking at changing things around in the company to make it more profitable in the future! A rather basic answered one does feel when most other gambling companies are making some huge profits from both the land based and online and mobile environments!
Tighter Money Laundering Requirements
Looking deeper into the report given for their lack of earnings, one additional eyebrow raiser they stated was that their digital business suffered a downturn in business when the UK Gambling Commission announced tighter money laundering restrictions!
One must wonder whether Rank’s online and mobile gambling channels were being used by criminals simply laundering their ill-gotten gains, for that has to be a very strange reason for the once profitable online casino and bingo sites they operate becoming less popular.
Aiming for a Much Younger Demographic of Customer
It has been planned for quite some time that due to the decrease in the number of people visiting the Rank Group owned land based casinos and bingo clubs that they would increase their promotional of their online bingo site and online casino site to try and attracting a much younger demographic of customers.
However, it is a well known fact that the cost of attracting such players can be huge, and as such they are certainly going to have to put their thinking heads on as to whether they will be able to increase their revenues moving forward, if that is something they can achieve.