Rank Group, operator of the Mecca Bingo chain, has criticised the government's decision to push up the levels of bingo tax despite reporting a 40 per cent increase in pre-tax profits for the six months ending 30 June 2009.

An increase in the number of people visiting the company's Grosvenor Casino business and the stabilisation of its Mecca Bingo division contributed towards a 3.5 per cent rise in group revenue, when compared with the same period last year. However, Rank revealed that the government's decision to raise bingo duty from 15 per cent to 22 per cent in the 2009 Budget, as well as increases in duty on amusement machine licences and casino gaming, had left operating profits £9m lower than expected.

Ian Burke, Rank Group chief executive, said: "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. "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."