Labour has suspended one of its general election candidates after the party was drawn into the controversy surrounding betting and the general election. Kevin Craig, Labour’s Central Suffolk and North Ipswich candidate, was “administratively” suspended after Labour was told by the Gambling Commission that an investigation had been launched into one of the party’s candidates. Apologising for what he described as a “huge mistake”, Craig admitted in a statement that he had placed a bet against himself winning the seat a few weeks ago. The development comes two weeks after the Guardian revealed that Rishi Sunak’s closest parliamentary aide, Craig Williams, had placed a £100 bet on a July election three days before the prime minister named the date. Craig said in a statement: “Throughout my life I have enjoyed the odd bet for fun whether on politics or horses. “A few weeks ago when I thought I would never win this seat I put a bet on the Tories to win here with the intention of giving any winnings to local charities. While I did not place this bet with any prior knowledge of the outcome, this was a huge mistake for which I apologise unreservedly.” He added: “It is right that the party upholds the highest standards for its parliamentary candidates – just as the public expects the highest standards from any party hoping to serve in government. 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.” The candidate has donated more than £100,000 to Labour in the last few years. A spokesperson for Labour said it would return £100,000 donated under Keir Starmer’s leadership. A spokesperson for Wes Streeting, the shadow health secretary, said he would give back £13,000 which Craig paid for staffing costs, and Marsha de Cordova, another Labour candidate, said she would give back £2,436 that Craig donated earlier this year. Craig is the founder and chief executive of the communications company PMLR, which describes him as an expert in political communications, crisis management and corporate communications. It previously created a nationwide awareness campaign to promote safe gambling. The market for betting on the Central Suffolk and North Ipswich constituency is very small, with just a handful of bookmakers offering odds on how the constituency will vote. Craig said he placed a bet on the Tories to win “a few weeks ago”, although it is not known which bookmaker he used. The longest odds on a Tory win in the constituency were 1.91 offered by Bet365 on 24 May, according to historical data from Oddschecker. This means that even if Craig placed his bet on a Conservative win at the most profitable moment he would have not even doubled his money. In a major U-turn earlier on Tuesday, the Conservative party dropped its support for Williams and another candidate, Laura Saunders, for allegedly placing suspicious bets about the date of the election. Labour said it had acted immediately to administratively suspend Craig, pending investigation, after the receipt of communication from the Gambling Commission. A Labour party spokesperson 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.”