In terms of fiscal responsibility, growth, and stability, The Rank Group is on par with Paddy Power and 888. These are among the healthiest gaming companies in the industry with clear plans forward and little systemic risk to their businesses. While no European country is rock solid stable, the United Kingdom is among the more financially stable entities in the old continent, and Rank has 95% of its business in the UK market. Sitting outside of the Eurozone is going to turn into a huge advantage when eventually the Eurozone breaks up due to too much debt. Admittedly nobody knows when this will happen, but we do know that deleveraging is certainly not taking place there, despite the austerity we have been hearing about all the time.

Rank’s balance sheet is as healthy as it can be. As of last annual report at midyear, net debt was only £52.9m compared with net debt of £137.0m in 2014. Rank used its debt wisely in acquiring Gala casinos in 2012, and has paid much of it off already. The rest can be paid off quickly so the company does not have to worry about trouble in the debt markets if any shenanigans occur this coming year.

Since absorbing Gala’s casinos, Rank controls 56 casinos, 96 bingo clubs, and a fast-growing digital gaming segment. The 2 casinos it controls in Belgium and the 9 bingo clubs operating in Spain are quaint little ventures, but nothing serious. Spain has looked increasingly unstable in the last two years, especially with secessionist movements mainly in Catalonia and some other provinces gaining steam. Even so, only 3% of Rank’s total business is Spanish based, and even less in Belgium.

The fastest growth for Rank is coming from digital, a very good sign. It does lead to competing against oneself, but there’s really little to do to avoid that. If you’re growing your digital market, that is going to cannibalize on some customers who would have otherwise gone physically to a casino. The hope is that you gain more digital customers on net than you took away from land-based, and that is indeed what is happening.