Rank Group Plc · LSE:RNK
Rank — Merrill Lynch Leisure Conference (2024)
13 slides from Rank's conference presentation, 2024
Slide 1: Peter Reynolds, Rank Group Plc
Peter Reynolds Rank G roup Plc
Slide 2: Rank Gaming: Who are we?
Rank G am ing W ho are w e? • O ne of the U K’s largest gam ing businesses – 122 M ecca Bingo Clubs – 32 G rosvenorCasinos – 2 Hard Rock Casinos – Blue Square internetgam ing and sports betting – O ver11,000 em ployees in UK
Slide 3: Gaming Deregulation: Stated Government Objectives
G am ing D eregulation Stated G overnm entO bjectives • Protectchildren and the vulnerable • W iden consum erchoice • No w eakening ofeffective regulation,especially “harderform s ofgam bling as found in casinos” • Strike a balance betw een gam ing tables and m achines • Avoid proliferation ofcasino
Slide 4: DCMS' Position Paper - the Curate's Egg
G am ing D eregulation DCM S’Position Paper-the Curate’s Egg • M inim um of5,000 sq ftforcasinos • Num berofm achines to have a “tw o-tier” structure – large casinos:unlim ited slots – sm allcasinos:3 slots pertable • Linking only w ithin casinos • Regionalplanning w illdecide num berand nature of c
Slide 5: DCMS' Position Paper - Rank's view
G am ing D eregulation DCM S’Position Paper-Rank’s view • M inim um of5,000 sq ftforcasinos – w illavoid proliferation on the high street • BUT,creating a tw o tierstructure w illhave other consequences...
Slide 6: Problems with DCMS' Position Paper
G am ing D eregulation Problem s w ith DCM S’Position Paper • Increased risk of problem gam bling – G am Care states thatm ostissues are related to m achines – Allow ing unlim ited slots w illresultin a greatertotal num berofm achines – Itis the num bernotthe location ofm achines w hich is im portan
Slide 7: Problems with DCMS' Position Paper
G am ing D eregulation Problem s w ith DCM S’Position Paper • Restrict consum er choice – custom ers in sm allcasinos w illbe unable to w in sam e levels ofprize,despite sam e stake – sm alloperators w illbe unable to offera broad range ofgam es,stake and prizes – lim ited m achine num bers m ay res
Slide 8: Problems with DCMS' Position Paper
G am ing D eregulation Problem s w ith DCM S’Position Paper • Encourage m achine-dom inated gam bling sheds – Expectation that“destination” casinos w illhouse over2,000 slots – No balance w ith num bers oftables – Casinos becom e large,sterile “arcades” – US experience likely to be replicated ifnotc
Slide 9: Problems with DCMS' Position Paper
G am ing D eregulation Problem s w ith DCM S’Position Paper • H eavy reliance on RegionalD evelopm ent A uthorities – No previous experience ofcontrolling gam ing – Clearrelationship w ith G am bling Com m ission w illbe im portant – M usthave statutory guidance from O DPM – G am bling Com m ission
Slide 10: A better framework
G am ing D eregulation A betterfram ew ork • Fixed ratio of m achines per table,irrespective of size of casino – 8:1 m aintains a good balance w hile allow ing operators to broaden choice – low erthan otherderegulated m arkets (US -15:1, Aus -11:1) – low ernum berofm achines in total – prom otes bet
Slide 11: A better framework
G am ing D eregulation A betterfram ew ork • Linking across casinos w illallow allcustom ers to play for large prizes – sam e products available in allcasinos – m aintains a “levelplaying field” – no evidence ofproblem gam bling from progressive jackpots -NationalG am e
Slide 12: Rank Gaming: The Opportunity
Rank G am ing The O pportunity – 122 M ecca Bingo Clubs • 67 in non-perm itted areas • c.30 possible conversions – 34 UK Casinos • 2 additionallicences granted • foursingle prem ises sites by end ‘04 – Blue Square internetgam ing and sports betting • M eccagam es.com • HardRockCasino.com
Slide 13: (x2 Rank Group
(x2 Rank Group een _ A. ng A ,S | Rank Group 4 NardiRock