The prime minister said he was "disappointed" with the behaviour of his parliamentary aide Craig Williams, revealed in the Guardian, but he would not be drawn on whether they had discussed the date of the election before the bet was placed.
The watchdog has now asked bookmakers to provide information on all substantial bets on the timing of the election after odds shortened on a July poll in the week before the date of the poll was announced.
Williams, who is standing for reelection in Montgomeryshire and Glyndŵr, placed a £100 bet with Ladbrokes on a July poll. The Gambling Commission launched an inquiry after the bet was referred to it by the bookmaker.
Williams, who was Sunak's parliamentary private secretary and MP for Montgomeryshire, would not confirm whether he had insider information on the date.
The prime minister refused to say whether he would disown Williams as a candidate. "It is very disappointing. Craig Williams has said that it's a huge error of judgment," he said. "Now there is an independent inquiry which is confidential and it's important that that is allowed to continue. It's not appropriate to say anything while that's ongoing."
It is understood that the Gambling Commission wrote to all licensed bookmakers this week requesting information on anyone who stood to gain more than £199 by betting on a July election.
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