The Gambling Commission has suspended charitable lottery operator Capen’s operating and software licences pending an investigation of its business.

The commission has instigated a review of Capen’s external lottery manager and gambling software licences under section 116 of the Gambling Act 2005, which allows it to suspend licences pending review if it has reason to believe an operator is breaking licence conditions.

It said: “The review follows concerns that activities may have been carried out contrary to the Gambling Act, not in accordance with a condition of their licence and that the licensee may be unsuitable to carry on the licensed activities.”

In accordance with section 118(2) of the Gambling Act 2005, the commission has suspended Capen’s operating licence with immediate effect.

Capen was founded by Simon Rydings, who serves as its chief executive. The firm received its operating licence in 2014 and its software licence in 2017.

It runs The Little Lottery, The Sports Lotto and Zaffo, and it also previously ran the defunct Lottery For Kids. It specialises in raffle-type draws with smaller prizes.

According to The Little Lottery’s marketing communications, it gives 23% of its revenues to good causes.