A betting scandal involving members of the UK's ruling Conservative Party has damaged their chances in the election race.

• Reports indicate that five individuals linked to U.K. Prime Minister Rishi Sunak are being probed for placing bets on the date of the July 4 election prior to its official announcement.
• The Gambling Commission is investigating party figures, and there are calls for Sunak to halt the probes.
• Betting on confidential information can be considered a criminal offense in Britain under Section 42 of the Gambling Act.

The Conservative party in Britain is facing a scandal over claims that senior officials used insider information to place winning bets on the election date.

Rishi Sunak's five associates are being probed for placing bets on the July 4 election date prior to its official announcement on May 22.

The Conservative Party's chief data officer, Nick Mason, is the latest Tory official to be investigated by the Gambling Commission, according to a report in The Sunday Times. Mason has taken a leave of absence and his spokesperson denied any wrongdoing, the British newspaper reported. CNBC was unable to immediately confirm this and the Conservative Party has not yet responded to a request for comment.

Craig Williams, a conservative MP for Montgomeryshire and a close aide to the prime minister, was the first to be questioned about a bet on the election date. In a statement on X, he admitted to placing a "flutter on the General Election some weeks ago."

Williams stated, "Although this has led to some routine inquiries, I confirm my full cooperation. I understand the importance of not allowing it to distract from the campaign. I regret not considering the appearance beforehand."

The Gambling Commission is also investigating Tony Lee, the campaign director of the Conservative Party, and his wife, Laura Saunders, who is the party's candidate in Bristol North West, for potential gambling-related issues.

The Independent reported that Lee has taken a leave of absence, and lawyers acting on behalf of Saunders stated that she will cooperate with the Gambling Commission and has nothing further to add. However, Saunders and Lee have not yet responded to a CNBC request for comment.

On June 17, one of Sunak's police protection officers was arrested on suspicion of misconduct in the public office after the Gambling Commission contacted the Metropolitan Police about alleged bets made by a police officer on the July polling day.

The officer has been taken off duty and the case has been handed over to the Met's Professional Standard Directorate and the Independent Office for Police Conduct, according to London's police force.

'Incredibly angry'

The Gambling Commission is investigating party figures, and there is a call to suspend them as support for the Conservative Party declines.

"Keir Starmer, the leader of the opposition Labour Party and a favorite to win the upcoming general election, stated that it is telling that Rishi Sunak has not yet done what he should have. If it were one of his own candidates, they would have been removed and their feet would not have touched the ground."

During a televised BBC election event last week, Sunak stated that he was "incredibly angry" about the scandal but did not comment on whether those involved should be suspended.

If anyone is found to have broken the rules, they will face the full consequences of the law and will be booted out of the Conservative Party, Sunak stated in a live audience. Sunak clarified on Monday that he and his family did not place a bet on the timing of the election.

The betting scandal is as damaging to the Tories as the "partygate" scandal during the Covid-19 pandemic, according to Michael Gove, secretary of state for leveling up, housing and communities and an outgoing Conservative lawmaker.

"Gove stated on BBC News that using inside information to place bets is deeply wrong and reprehensible."

Criminal offence

Betting on confidential information can be considered a criminal offense in Britain under Section 42 of the Gambling Act.

The Gambling Commission is currently investigating potential offenses related to the date of the election, according to a spokesperson for the industry regulator. However, the commission cannot confirm the identities of those involved in the ongoing probe.

Pat McFadden, Labour's candidate for Wolverhampton South East, has requested that the Gambling Commission disclose the names of other individuals being probed in connection with this issue.

McFadden expressed his deep concern in a letter to the commission about the ongoing speculation that is negatively affecting the election. He wrote that the public will be rightfully outraged if anyone close to the decision to call the election used insider information to profit from a predetermined outcome.