The UK government recently announced that it was axing the Value Added Tax (VAT) and gross profits tax and would supplement the loss by increasing other gaming-related taxes.

"Axing VAT will cost the Exchequer £50m this year, but it plans to generate £10m more in 2009/10 with three new measures," reported the telegraph.co.uk.

"It is raising gross profits tax on bingo from 15pc to 22pc to raise an extra £35m, pocketing £20m from a 9pc increase on the duty paid on amusement machines and introducing a new tax on casino card rooms."

Online gaming companies were not happy with the development, particularly Rank, who said, "the Rank Group Plc notes with dismay the increases to bingo duty and poker taxation announced in Her Majesty's Government Budget statement," Rank said last week.

Rank wasn't the only company either as William Hill CEO Ralph Topping told the Financial Times that increased taxes could force parts of his outfit to relocate offshore.

Topping said that domestic taxes severely hampered local betting outfits and created a huge advantage for offshore companies.