The party suspended Kevin Craig, Labour's candidate for Central Suffolk and North Ipswich, after the Gambling Commission launched an investigation into his actions.
In 2019, Conservative candidate Dan Poulter secured the seat with a majority of just over 20,000 votes. Poulter later defected to Labour.
Craig issued a statement on social media, clarifying that he "did not place this bet with any prior knowledge of the outcome" and had intended to donate any winnings to local charities.
"This was a huge mistake, for which I apologise unreservedly," Craig stated. "I have immense respect for how Keir Starmer has transformed the Labour Party and have been working tirelessly to win this seat and support change in the country alongside him. However, it is essential that the party maintains the highest standards for its parliamentary candidates, just as the public expects from any party aiming to govern."
In addition, Labour returned a £100,000 donation by Craig in May 2023. Since 2005, Craig has donated £196,600 to the party.
A Labour spokeswoman commented, "Under Keir Starmer's leadership, the Labour Party upholds the highest standards for our parliamentary candidates, as the public rightly expects from any party aspiring to govern, which is why we have acted immediately in this case."
This incident coincides with the Conservative Party's decision to withdraw support from two candidates, Craig Williams (Montgomeryshire and Glyndŵr) and Laura Saunders (Bristol North West), who are also under investigation by the Gambling Commission for alleged betting on the date of the general election.
