CrownBet has ditched its ambitious plan to provide online sports-betting services in up to 1200 clubs across New South Wales, a move that would have threatened the dominance of the TAB.

In correspondence circulated to venues on Thursday, ClubsNSW chief executive Anthony Ball said the deal with CrownBet would not proceed due to “ongoing regulatory uncertainty”.

“The commercial reality is that the offer cannot proceed without a clear direction from the regulator that the offer is compliant with the law,” Mr Ball said.

CrownBet was set to become ClubsNSW’s “digital wagering partner” under the 10-year deal that included advertising and new technology for club patrons to gamble on the CrownBet phone app while in venues, instead of TAB terminals, and for clubs to be paid commissions.