Online betting exchange Betfair has bailed out around 5,000 punters who were in danger of losing their money following the bankruptcy of rival online betting firm Sporting Options.

All Sporting Options customers who had up to £1,000 in their closed accounts will have the amount they are owed credited to a Betfair account, meaning that nearly 95 per cent of punters will be able to take the hand out.

Sporting Options went into administration on 15 November and Betfair said its intervention comes as it wants to prevent the online betting industry being seen in a detrimental light.

Hill pointed out that current legislation does not ensure the protection of customer accounts – an issue he wants to see change by giving the Gambling Commission powers to conduct spot check audits of both online and high street bookmakers.