Peter Gill has resigned as finance director of Mecca bingo and Grosvenor casinos operator Rank.

He leaves after the leisure operator experienced one of its worst ever trading years, with several profit warnings issued in 2007.

Gill will leave on 1 June, to be replaced by Paddy Gallagher, currently chief financial officer of hotel entertainment systems group Quadriga Worldwide.

Rank's Mecca bingo operation has seen a decline in trade following the UK smoking ban, which came into force last July. It has sold the group pension scheme to ease financial pressures and now expected to be taken over.

Bingo business marginally improved in early 2008, but casino earnings continue to fall. Rank also runs an online sports betting arm called Blue Square. Revenue has been increasing but recent trade has suffered after sports results went in favour of the punters.

Gill joined Rank as finance director in July 2005. He was involved in a £1.2 billion restructuring programme which included the disposal of Rank's film business and Hard Rock cafe chain.

Peter Johnson, chairman of Rank said: 'Peter has been instrumental in thesuccessful and substantial restructuring of the Group over the last three years.He leaves Rank a focused gaming business, in a strong position to address its challenges and opportunities.'

Rank gave no reason for Gill's departure or details of whether he had obtained another job. 'The announcement does not give any encouragement as to current trading, nor does it add weight to the speculation that the group is about to receive a bid, for which he would presumably get a payoff if it was successful,' said Landsbanki analyst Mark Reed.

Malaysian gaming and leisure group Genting owns 11% of Rank and is rumoured to be preparing a 124p per share takeover offer. Hong Kong-listed investment house Guoco and the Richardson property and haulage family have also been building stakes.

'While we recognise the three significant stakeholders in the group, we do note only one (Hong Leong Company) has been raising its stake in recent weeks, and typically at lower levels. We can not rule out a bid, although we do question why anyone would want to pay a premium for Casino and Bingo assets,' added Reed.

Rank is not the only bingo operator to be experiencing trading problems. Gala Coral yesterday received extra cash from its private equity backer to avoid the risk of breaching its bank borrowing limits. Smaller bingo operator Top Ten Holdings also yesterday issued a profit warning, blaming the smoking ban and the new Gambling Act, which imposed a lower limit on the amount of prize money available through gaming machines.