A £70m scheme to turn a former holiday camp site into an e-gaming firm’s headquarters has been “halted indefinitely” after the company had its licence cancelled, a developer has said.

Excel Group (EG) had been tasked by Jade Tree Ltd and King Gaming (KG) to redevelop the Cunningham’s Camp site in Douglas.

KG’s e-gaming licence, which was suspended by the Isle of Man Gambling Supervision Commission (GSC) in April, was cancelled on Wednesday.

EG’s Gary Proctor said the halting of the project was a blow to the island’s construction sector as “a lot of work would have fed through to the local economy”.

The development of a campus on the former holiday camp was billed as the “largest single private investment” on the island when it was announced in May 2022.

Plans for the complex spanning just over two acres (0.8 hectares) included a large office block and staff accommodation.

Mr Proctor said his firm, which had been the principle contractor and architect for the scheme, previously completed piling works on the foundations, but the site had now been cleared.

He said the development, which had been paused since April, was now subject to an “indefinite” stoppage.

He said the project being halted had been a “shock” to the firm as it had “taken £70m out of the sector over the next three years”, a substantial chunk of which would had stayed on the island through the employment of local sub-contractors and traders.

Isle of Man Constabulary said a fraud and money-laundering investigation into King Gaming Ltd IOM was continuing.

The Department for Enterprise (DfE) said while it would not comment on a live investigation, it was “disappointed” to see the project cease.

A representative added that the DfE was “optimistic” the construction sector would remain “very active” with “a great deal of significant” projects under way or in the final stages of planning.