The United Kingdom's 2009 budget has signaled bad news for gaming operating, with an increase in gross profits tax to hit bingo sites, slots and casino poker rooms.

The new tax, which comes as a replacement for the government's controversial value-added tax, will hit online bingo rooms particularly hard as the tax on bingo increases from 15 percent to 22 percent.

Slots and other gaming machines will suffer a nine percent tax increase, while a new tax will also be imposed on casino poker rooms.

Rank Gaming Group, the UK's largest bingo operator, predicted the changed could cost it as much as $13 million annually.

Bingo operators had argued for the removal of the VAT because they had to pay it as well as a gaming tax. But the introduction of these new taxes cancels out the gains made under the VAT's removal.

Bookmakers were happier with the budget after avoiding a hike in gross profits tax.

A Ladbrokes spokesman said "Our case was strong, the arguments were strong, the industry's entering recession. It wouldn't make sense to single out on particular sector when businesses are under such pressure."

The chairman of the Association of British Bookmakers, Warwick Bartlett said his organization was able to show that an increase in the tax would have led the loss of as many as 1000 shops.

"The government realizes the priority was to protect jobs," he said.