£3.5m lost from Sporting account

A £3.5m black hole in customer funds has been uncovered at collapsed betting exchange Sporting Options.

Funds in Sporting's client account, which was ring-fenced to ensure punters' money would not be lost if it went bust, amount to less than £100,000 but the total amount due to the account is more than £3.6m.

Administrator Paul Clark confirmed the discrepancy appeared after Sporting's bank accounts were frozen. He confirmed Sporting's trading activities had ended, but he hoped account holders would be able to view their accounts shortly.

Betfair, the UK's market leader, has stepped in with a rescue package that means 5,000 of Sporting's 5,300 customers could get all their money back.

The rival exchange has bought some of Sporting's assets including the client list. Betfair boss Stephen Hill said: 'The demise of Sporting Options shows why we urgently need the new Gambling Bill to regulate online bookmakers.'