Scottish Secretary Alister Jack allegedly told the BBC he won £2,100 after placing a series of bets on a July general election.
When quizzed on the comments, the minister initially told the broadcaster they were a joke.
However, late on Thursday night he admitted placing three small bet on the date of the election.
The senior Scottish Tory said he had not broken any rules and was not under investigation by the Gambling Commission.
The extraordinary revelation came just hours after the Conservative Party withdrew support from two candidates who also gambled on the timing of the vote.
READ MORE: Tories withdraw support for candidates accused of election bets
"I am very clear that I have never, on any occasion, broken any Gambling Commission rules", Mr Jack told the broadcaster.
"I did not place any bets on the date of the general election during May - the period under investigation by the Gambling Commission.
"Furthermore, I am not aware of any family or friends placing bets. I have nothing more to say on this matter."
Later, he said: "Following reports today I want to be absolutely clear I have not breached any gambling rules.
"I placed two unsuccessful bets on the date of the general election and one successful one.
"I put two bets on in March of £5 each for an election to be held in May and June respectively.
"In April, I put £20 at 5 to 1 on an election being held between July and September.
"I had no knowledge of the date of the election until the day it was called.
"As I have said previously, I placed no bets in May and am not under investigation by the Gambling Commission."
The BBC said Mr Jack had been telling colleagues and journalists for at least a year that he thought a June or July election made the most strategic sense for his party.
Last week, when asked about the comments, Mr Jack told the BBC they were “a joke… I was pulling your leg”.
Mr Jack is not standing at the election, and had been widely expected to take up a seat in the House of Lords.
A spokesperson for the Gambling Commission said: "We are not confirming or denying the identity of any individuals involved in this investigation."
Earlier in the day, the Tories withdrew support Craig Williams, the candidate in Montgomeryshire and Glyndŵr, and Laura Saunders, the candidate in Bristol North West.
Both are being looked into by the Gambling Commission.
As the deadline for nominations has closed, they will still be on the ballot paper as Conservatives.
Mr Williams, an aide to Mr Sunak, has already admitted placing the wager two days before Mr Sunak called the election.
As well as the candidates, two senior Tory officials under investigation have also taken a leave of absence, including Ms Saunders' husband, Tony Lee, the party's campaign director.
A Tory Party spokesman said: “As a result of ongoing internal inquiries, we have concluded that we can no longer support Craig Williams or Laura Saunders as parliamentary candidates at the forthcoming General Election.
“We have checked with the Gambling Commission that this decision does not compromise the investigation that they are conducting, which is rightly independent and ongoing.”
Liberal Democrat deputy leader Daisy Cooper wrote on X: “This should have happened immediately when these scandalous revelations emerged, but instead Rishi Sunak has dithered and delayed."
READ MORE: Labour withdraw support for candidate over betting against himself
The Met Police has also confirmed that five further officers are being looked into by the Gambling Commission.
One of the Prime Minister's close protection officers has already been arrested.
Meanwhile, in a separate development, Labour has suspended a candidate who bet against himself.
Kevin Craig admitted making a “stupid error of judgment” after putting money on the Tories defeating him in the constituency of Central Suffolk and North Ipswich.
He claimed he had done so because he thought he would “never win this seat” and had been planning to give any winnings to local charities.
A Labour spokeswoman said: “With Keir Starmer as leader, the Labour party upholds the highest standards for our parliamentary candidates, as the public rightly expects from any party hoping to serve, which is why we have acted immediately in this case.”
According to reports, the party has also since handed back £100,000 in donations it received from Mr Craig.
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