2) The UK Gambling Commission revokes licenses issued to sportsbooks with illegal activities like money laundering.
3) After the proof of Sportsbet's illegal activities is submitted to the UK Gambling Commission, Watford FC has to say good bye promoting it!

First and foremost they cancelled their deal on August and it was on the papers on September 1st, you just came to know about it and to paste those here is irrelevant.
The reason for the removal is they were
blacklisted because they have been used to promote betting on childrens sports, cockfighting and a pornographic casino. and it is clearly given in the link you provided. Are you mature enough to read and understand what is given or you know something the rest of the world does not know

. The said sports book used to advertise in illegal streaming sites too, so it is not a big surprise for the authorities to take action.