Bobby Wright was diagnosed with a rare form of cancer in 2005
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A Devon company under investigation by the Gambling Commission is applying to become a charity.
The gambling industry watchdog carried out a search at the office of Bobby's Fund in Kenn, near Exeter in 2008.
The not-for-profit company was set up to pay for specialist cancer treatment for six-year-old Bobby Wright.
The fund has continued to raise money to help other children and managers say they now want to create a charity in order to continue the work.
Economic climate
Bobby Wright was diagnosed with a form of aggressive cancer called neuroblastoma in April 2005.
The fund was set up to raise £200,000 to send him to the USA for treatment, but once he made a full recovery, Bobby's father Kevin continued to collect cash.
Bobby's Fund cold-calls members of the public and sells them raffle tickets.
Its offices were searched by the Gambling Commission with the help of police in August 2008.
Mr Wright has insisted there was no question of wrong-doing.
Fund manager Ian Weir told BBC News that a charity it was setting up would have a "similar idea" to the company.
"We are in the process of registering as a charity.
"It's in the pipeline because it's difficult to operate as a company in the current economic climate."
He rejected reports that the company was due to move from its current base at Mr Wright's home to a "multi-million pound country estate".
A spokesman for the Gambling Commission said it could not comment, but said Mr Wright's fund remained on their list of lotteries licensed to raise more than £250,000 a year.
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