A spokesperson for chief whip Simon Hart said: "Following his self-referral to the parliamentary commissioner for standards earlier this evening, Scott Benton has had the Conservative Party whip suspended whilst an investigation is ongoing."
The decision comes just hours after Rishi Sunak, who entered office last year promising "integrity" within the party, faced calls to strip the Blackpool South MP of the Conservative whip in light of the revelations.
Mr Benton was caught on camera telling undercover reporters posing as investors how he was willing to take actions which would break parliament's lobbying rules. They are also prohibited from serving as a paid parliamentary adviser or consultant or guiding firms on ways to influence parliament.
In a meeting in early March, Mr Benton described how he could support the fund, which he believed was set up by an Indian businessman looking to make investments in the UK betting and gaming sector, by attempting to water down proposed gambling reforms.
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