An e-gaming firm at the centre of fraud and money laundering allegations has had its gambling licence cancelled.

In April, authorities raided two business premises, located on Victoria Road and Bucks Road in Douglas, linked to e-gaming firm King Gaming Ltd.

Seven people were arrested during the raids before being released on bail pending further enquiries. In May The Isle of Man Constabulary confirmed another three people have been arrested as part of the same probe and were later released on bail.

Now, the Isle of Man Gambling Supervision Commission has announced it has cancelled King Gaming’s licence.

In a statement it says: ‘The Commission considers that it is in the public interest to issue this statement to advise stakeholders that further to section 13 of OGRA, the Commission cancelled King Gaming Limited’s licence on July 24, 2024. This decision has immediate effect.

‘Notwithstanding the decision above, the Commission continues to liaise with partner agencies regarding aspects of King’s affairs.

‘The Commission will make no further public comment regarding this until matters are fully concluded.’

It now means one of biggest developments in Douglas is almost certainly no longer going ahead.

In July last year, King Gaming received planning consent for a major ‘parkland campus’ to house the company’s headquarters on the island.

It was described as the ‘largest single private investment in the Isle of Man’ and would create around 300 jobs.

But building work stopped on the site of the former Cunningham’s holiday camp.

Construction company Excel Group had been contracted to build the new headquarters and has been working on the project for two and a half years.

Managing Director, Gary Proctor told Manx Radio the company is not anticipating returning to the site, or progressing design work in the foreseeable future. He said the suspension was a blow to the sector and affected companies throughout the supply chain.

Earlier this month Isle of Man Constabulary confirmed the investigation is ongoing but declined to say whether anyone has been charged or if any further arrests have been made. That remains the case this week.

Back in May a spokesperson for the force said: ‘This activity forms part of a wider fraud and money laundering investigation being led by the Isle of Man Constabulary’s Proactive International Money Laundering Investigation Team who continue to conduct enquiries in close liaison with partners within the island’s AML/CFT regulatory and intelligence network to fully investigate these matters.’

King Gaming’s registered office is currently based on Bucks Road and the company also operates from premises in the Summerhill Business Park. Dalmine is based at the same address on Bucks Road.

In the same week, the Isle of Man Financial Services Authority wrote to Soteria Solutions Limited, a virtual asset business related to cryptocurrency registered on the Isle of Man, telling the firm to stop all business.

According to the authority, Soteria shares directors and officers with the King Gaming group of companies.