Rank Group discloses €7.1m payment fraud at Spanish units.

Rank Group has confirmed that its Spanish gaming operations have been affected by a €7.1m payment fraud, marking a notable compliance and financial incident for the UK-listed operator. The company said its Enracha and Yo brands were targeted, prompting immediate engagement with law enforcement authorities and the launch of an internal investigation supported by an external law firm.

In a regulatory statement published on 22 December, Rank described the incident as exceptional and confirmed that the financial impact will be treated as a separately disclosed item in its accounts. The group has not provided further operational details while investigations remain ongoing, but stressed that enhanced controls are expected to follow.

City analysts have responded cautiously to the disclosure. Peel Hunt noted that while the fraud is unwelcome, Rank retains a healthy cash position and the loss does not threaten its ability to pursue existing investment plans. Analysts Ivor Jones and Douglas Jack reiterated a Buy recommendation, stating that the group is financially positioned to absorb the cost. They added that recovery of the lost funds is considered unlikely.

The update comes at a challenging time for the operator. Rank is already preparing for a substantial impact from recent UK duty increases, including higher Remote Gaming Duty and General Betting Duty rates. The company previously warned of a £40m hit to operating profit before mitigation, partially offset by the abolition of bingo duty.

Chief executive John O’Reilly has described the duty hikes as a significant blow to digital profitability, underlining the pressure facing regulated operators. Against this backdrop, the Spanish fraud incident highlights the growing importance of payment security and internal financial controls across international gaming markets.