Former Labour candidate Kevin Craig has said: "I'll probably never place another bet" after being cleared of acting inappropriately during the general election campaign.
Mr Craig was suspended as Labour candidate for the Central Suffolk and North Ipswich constituency just nine days before polling.
Nominations had already been accepted so his name still appeared on the ballot paper and no other Labour candidate could be chosen.
In the event Conservative Patrick Spencer won the seat with a majority of almost 4,300.
Mr Craig was investigated by the Gambling Commission after it discovered he had placed a bet of £812 on him losing the election. He planned to give any "winnings" if he lost to charity.
Several Conservative candidates who had been MPs in the last parliament admitted doing the same thing - but Mr Craig was the only one to be suspended by his party.
The Conservatives suspended candidates who had bet on the date of the election - but not on those who have bet on themselves to lose.
Mr Craig has now received a letter from the Gambling Commission who said that after investigation the matter and hearing his comments they would not be taking any further action and the investigation is now closed.
He has now been fully reinstated into the Labour Party - and has written to the Prime Minister suggesting a bill should be passed to ban all politicians from betting on political issues.
He said: "I've always liked a flutter on sport, on horses, or on things like politics - but after this I'll probably never place another bet."
He added: “The actions of the Gambling Commission and William Hill triggered an awful process for me, the local Labour Party and voters in our constituency.
"Worst of all, it left the people of Central Suffolk and North Ipswich in limbo – and it devastated the Constituency Labour Party (CLP) and officers as much as it devastated me.
"I have no doubt that the outcome of the election in this constituency was affected by the Gambling Commission’s decision and that’s not right or fair on voters. It has caused a huge amount of pain.
“Whatever the election result in Central Suffolk and North Ipswich, I had already committed to significant charity support in the constituency and I will be doing so over the coming weeks and months.
"I have already identified the first projects that I wish to help and I want to thank members of the Suffolk community who have been so supportive of me throughout this ordeal.
“Moving forward, I don’t wish what happened to me to happen to any political candidate of any party.
"That is why attached to my private letter sent to the Prime Minister is a draft Bill which prohibits betting on politics by those who are standing as candidates or serving as political staff.
"I am so happy to be totally and utterly cleared but I don’t want anyone else – whatever their politics - to ever go through what I have had to go through.
“I am over the moon to have been reinstated to the Party that I have served and supported since 1993.
"Most of all, it’s time for Labour to focus on what it was elected to do – fix the foundations of the country and deliver the change the public voted for to make this country better and fairer.
"I will support the Prime Minister, the Party and the government in any way I can over the years to come.”
Before the betting controversy arose the constituency was already one to watch because former Conservative MP Dr Dan Poulter sensationally defected to Labour just months before polling day - and had been out campaigning with Mr Craig in the weeks before his suspension.
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