Rank Group's Spanish operations suffered a payment fraud of 7.1 million euros (approximately 8.2 million US dollars), and has reported the case to the Spanish authorities and initiated an internal investigation. This incident involves the group's two major brands, Yo and Enracha, and related anti-fraud cases in the gambling industry can be queried through the PASA official website.
Fraud Incident Core: Significant Amount Affects Financial Statements
This wave of fraud is really adding insult to injury for the group! The amount involved reaches 7.1 million euros, which the group has clearly listed as a special item for the fiscal year 2025-26, directly affecting financial results. After the announcement, investor sentiment was dampened, and Rank's stock price fell sharply in early trading. Currently, the group has not disclosed the specific nature and duration of the fraud, but confirms that it is fully cooperating with the authorities in the investigation.
Multiple Pressures: Fraud Combined with Tax Reforms and Regulatory Challenges
The group is currently facing attacks from all sides! In addition to the impact of fraud, it also needs to cope with regulatory and tax changes in core markets, such as the increase in the UK remote gaming tax which has already had a substantial impact on the group's profits, although the cancellation of bingo tax can partially offset this, but the net impact should not be ignored. The new chairman, John Oates, took office on November 17 and is facing this difficult situation.
Performance of Spanish Operations: Digital and Physical Divergence
The performance of the Spanish market is actually a bit of a mixed bag! As of September 30, the quarterly data shows that the digital brand Yo had a slight decrease of 1% in net gaming revenue year-over-year due to platform capacity issues, however, the group has launched a new bingo platform overhaul, and expects a return to growth in the December quarter. Meanwhile, the 9 Enracha physical venues performed well, with net gaming revenue increasing by 5% over the same period.
Response Measures: Comprehensive Investigation and Internal Control Optimization
In response to the crisis, the group's reaction has been quite swift! Not only has it reported the case to the relevant law enforcement agencies and provided support, but it has also hired an external law firm to assist in conducting an internal investigation. At the same time, the group is thoroughly reviewing internal control processes to prevent similar risks from the root, and will continue to disclose the progress of the investigation.
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This article is from "PASA-Global iGaming Leader" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
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