A professional gambler is being investigated by Hampshire police after a multi-million pound gambling scheme collapsed.

Administrators have been called in to work out what to do with what is left of Arboretum Sports, which promised investors a return by using a full proof arbitrage betting strategy.
 
Many of the investors are individuals who have used life savings into the company - founded by Dave Dixon, a professional gambler. But have not seen the promised returns on their investments and have not been able to make contact with Mr. Dixon.

Winchester Crown Court heard that Mr. Dixon told the police that he had obtained the cash as a result of his professional gambling and that he had intended to use it to place further bets.

Arboretum Sports convinced people to part with their cash by showing them massive projected returns on their investment. They were told the money was to be used to place bets using arbitrage betting to exploit differences in bookmakers' odds.

Nedim Ailyan, a liquidator at Abbott Fielding, said: "We believe that more than 650 people have paid into this scheme and letters have been sent out to inform them of the situation regarding Arboretum Sports."

"We have been unable to locate any bank accounts that contain any money belonging to Arboretum Sports," he added.

Scores of investors in the Basingstoke area poured thousands of pounds into the company, which used a type of gambling known as “arbing” or “surebetting” to exploit differences in odds provided by bookmakers on selected events to give a “risk free” profit.

Liquidators estimate over £10 million may have been invested in the company.

One individual is known to have brought a briefcase stuffed with £100,000 in cash to pay into Arboretum Sports. It is unclear whether all investors paid tax on their investments.

Investors initially received huge dividends, but they have received no funds back since June 2006.

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