The chancellor of the exchequer, Gordon Brown, has announced a rise in gaming duty to 50 per cent in this year’s budget.

The treasury expects to reel in around £100m from the industry over the next three years, as Brown raises the duty from 40 per cent to 50 per cent on annual gross gaming yields – the amount placed as bets minus the winnings paid out – of more than £10m.

In addition, the 2.5 per cent starting rate of gaming duty will jump to 15 per cent.

Penny Cobham, chair of the British Casino Association, said: “The increased top rate of 50 per cent gaming duty tax for casinos will threaten the regenerative benefits of new casinos anticipated by the Gambling Act and exposes the contradictions and lack of any joined-up thinking that has characterised the government's handling of this entire process.

“This tax hike, introduced without consultation, is yet another swipe at a great British industry and British jobs and makes our vigorous pursuit of a judicial review of the Gambling Act all the more urgent.”

There are also fears that the tax jump may discourage operators from taking on one of the 17 new casinos being introduced to the UK, as the supercasino and many of others will fall into the £10m tax bracket.