Election betting scandal spreads to Labour as candidate gambles against himself

Kevin Craig said he thought he would never win his seat and had been planning to give any winnings to local charities

Kevin Craig arrives with the Olympic flame at St Paul's Cathedral a day before the start of the London 2012 Games. AFP

A Labour candidate who was suspended by the party has said he is “deeply sorry” for betting against himself winning a seat in the general election, amid an investigation by the gambling watchdog.

Kevin Craig placed a wager on his Conservative opponent defeating him in the Central Suffolk and North Ipswich constituency, where the rival party won by a majority of 23,391 in 2019.

He claimed he thought he would “never win this seat” and had been planning to give any winnings to local charities, adding that he had made a “stupid error of judgment”.

Labour found out on Tuesday that Mr Craig was being investigated by the Gambling Commission and moved immediately to withdraw its backing for him, it is understood.

It comes amid a wider scandal over gambling on the date of the general election, with five Conservative candidates and officials facing an inquiry by the watchdog.

“While I did not place this bet with any prior knowledge of the outcome, this was a huge mistake, for which I apologise unreservedly,” Mr Craig said in a statement on Tuesday

“I deeply regret what I have done and will take the consequences of this stupid error of judgment on the chin.

“I am deeply sorry to the many dedicated and loyal local Labour Party volunteers who have been supporting my campaign. I will comply fully with the investigation.”

A Labour Party spokeswoman said: “With Keir Starmer as leader, the Labour party upholds the highest standards for our parliamentary candidates, as the public rightly expects from any party hoping to serve, which is why we have acted immediately in this case.”

The PA news agency understands the party has also since handed back £100,000 ($127,000) in donations it received from Mr Craig.

Mr Craig, who founded public affairs agency PLMR and is described on its website as an expert in “political communications” and “crisis management”, was campaigning in Suffolk on Tuesday.

He posted on X that he had attended the Ipswich Family Bank and said he hoped to “work with them to bring change after [July 4]”.

Mr Craig was standing in the constituency after Dr Dan Poulter, who won the seat as a Tory, defected to the opposition party in protest against the Conservatives’ “rightward drift” and neglect of the National Health Service.

Dr Poulter confirmed he would not be seeking re-election for the seat in 2024.

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Because nominations have closed, Mr Craig – along with Craig Williams and Laura Saunders, the two Tory candidates who have been suspended over allegations of insider betting on the election date – will still be on the ballot paper.

Rishi Sunak on Tuesday pulled support for Mr Williams and Ms Saunders after days of pressure to take stronger action following claims over the use of insider information to place bets on the date of the vote.

The row had overshadowed the Conservatives' election campaign in recent days as Mr Sunak tries to close his party’s 21-point average poll deficit to Labour.

Mr Williams, who was the Prime Minister’s parliamentary aide and is standing in Montgomeryshire and Glyndwr, says he “committed an error of judgment, not an offence” and intends to clear his name.

Two senior Tory officials have also taken a leave of absence at a crucial point in the campaign after being drawn into the Gambling Commission investigation.

Ms Saunders’s husband Tony Lee, Tory director of campaigning, and chief data officer Nick Mason have stepped back from their duties, while a police officer on Mr Sunak’s close protection team is also being investigated.

Mr Sunak had faced demands from within the party to act on the candidates over concerns the issue was further damaging the Conservatives’ electoral chances.

In a sign of the widened scope of the Gambling Commission’s investigation, the watchdog passed information to the Metropolitan Police claiming that five more officers had placed bets related to the timing of the poll.

The watchdog said the investigation into Mr Craig was separate from the wider inquiry into election betting.

“This investigation is a separate case to the ongoing election betting investigation,” a Gambling Commission representative said.

“This is an ongoing criminal investigation and the commission cannot provide any further details at this time.”

Another Conservative cabinet minister has implicated himself in the scandal, with Scottish Secretary Alister Jack telling the BBC he had made £2,100 after betting on June and July election dates.

He said one of the bets was placed at odds of 25/1.

Mr Jack told the BBC last week that the comments were “a joke … I was pulling your leg”.

On Tuesday, he said in a statement he “did not place any bets on the date of the general election during May”.

“I am very clear that I have never, on any occasion, broken any Gambling Commission rules,” Mr Jack said.

“I did not place any bets on the date of the general election during May – the period under investigation by the Gambling Commission.

“Furthermore, I am not aware of any family or friends placing bets. I have nothing more to say on this matter.”

During the past year, Mr Jack had been telling journalists and colleagues that a June or July general election was best for his party as it made the most strategic sense.

On Tuesday evening, Russell George, a Conservative member of the Senedd, stepped back from the Welsh shadow cabinet as he also faces an investigation by the gambling watchdog.

Mr George represents Montgomeryshire in the Welsh parliament – the same area from which Mr Williams has had party support withdrawn.

“Russell George has informed me that he has received a letter from the Gambling Commission regarding bets on the timing of the general election,” Welsh Conservative leader Andrew Davies said.

“Russell George has stepped back from the Welsh Conservative shadow cabinet while these investigations are ongoing.

“All other members of the Welsh Conservative Group have confirmed that they have not placed any bets.

“I will not issue further comment on this ongoing process, recognising the Gambling Commission’s instruction for confidentiality to protect the integrity of the process.”

Mr George said: “Whilst I will co-operate fully with the Gambling Commission, it would not be appropriate to comment on this independent and confidential process.

“Doing so would only jeopardise and undermine the investigation.

“It is the Gambling Commission, not the media, that has the responsibility, powers and resources to properly investigate these matters and determine what, if any, action should be taken.

“I have stepped back from the shadow cabinet while the investigation is ongoing. I have done this as I do not wish to be an unnecessary distraction to their work.

“As such, I will not be providing any further public comment on this until the Gambling Commission has concluded its work.”