diff --git a/libraries/chain/betting_market_object.cpp b/libraries/chain/betting_market_object.cpp
index 4c3eeae5..f5cc9f6d 100644
--- a/libraries/chain/betting_market_object.cpp
+++ b/libraries/chain/betting_market_object.cpp
@@ -195,6 +195,7 @@ namespace
          void on_entry(const canceled_event& event, betting_market_state_machine_& fsm) {
             dlog("betting market ${id} -> canceled", ("id", fsm.betting_market_obj->id));
             fsm.betting_market_obj->resolution = betting_market_resolution_type::cancel;
+            fsm.betting_market_obj->cancel_all_bets(event.db);
          }
       };
 
@@ -375,6 +376,18 @@ void betting_market_object::cancel_all_unmatched_bets(database& db) const
          db.cancel_bet(*old_book_itr, true);
    }
 }
+    
+void betting_market_object::cancel_all_bets(database& db) const
+{
+    const auto& bets_by_market_id = db.get_index_type<bet_object_index>().indices().get<by_betting_market_id>();
+    
+    auto bet_it = bets_by_market_id.lower_bound(id);
+    auto bet_it_end = bets_by_market_id.upper_bound(id);
+    for (; bet_it != bet_it_end; ++bet_it)
+    {
+        db.cancel_bet(*bet_it, true);
+    }
+}
 
 void betting_market_object::pack_impl(std::ostream& stream) const
 {
diff --git a/libraries/chain/include/graphene/chain/betting_market_object.hpp b/libraries/chain/include/graphene/chain/betting_market_object.hpp
index 4f6665c8..772d2219 100644
--- a/libraries/chain/include/graphene/chain/betting_market_object.hpp
+++ b/libraries/chain/include/graphene/chain/betting_market_object.hpp
@@ -154,6 +154,7 @@ class betting_market_object : public graphene::db::abstract_object< betting_mark
       betting_market_status get_status() const;
 
       void cancel_all_unmatched_bets(database& db) const;
+      void cancel_all_bets(database& db) const;
 
       // serialization functions:
       // for serializing to raw, go through a temporary sstream object to avoid
@@ -585,12 +586,14 @@ struct compare_bet_by_bettor_then_odds {
 };
 
 struct by_odds {};
+struct by_betting_market_id {};
 struct by_bettor_and_odds {};
 typedef multi_index_container<
    bet_object,
    indexed_by<
       ordered_unique< tag<by_id>, member< object, object_id_type, &object::id > >,
       ordered_unique< tag<by_odds>, identity<bet_object>, compare_bet_by_odds >,
+      ordered_non_unique< tag<by_betting_market_id>, member<bet_object, betting_market_id_type, &bet_object::betting_market_id> >,
       ordered_unique< tag<by_bettor_and_odds>, identity<bet_object>, compare_bet_by_bettor_then_odds > > > bet_object_multi_index_type;
 typedef generic_index<bet_object, bet_object_multi_index_type> bet_object_index;
 
diff --git a/tests/betting/betting_tests.cpp b/tests/betting/betting_tests.cpp
index 1e6d97b5..f77d410f 100644
--- a/tests/betting/betting_tests.cpp
+++ b/tests/betting/betting_tests.cpp
@@ -1591,8 +1591,15 @@ BOOST_AUTO_TEST_CASE(event_group_delete_test)
 {
     try
     {
+        ACTORS( (alice)(bob) )
         CREATE_ICE_HOCKEY_BETTING_MARKET(false, 0);
         
+        const int initialAccountAsset = 10000000;
+        const int betAsset = 1000000;
+        
+        transfer(account_id_type(), alice_id, asset(initialAccountAsset));
+        transfer(account_id_type(), bob_id, asset(initialAccountAsset));
+        
         const auto& event_1 = create_event({{"en", "event 1"}}, {{"en", "2016-17"}}, nhl.id);
         const auto& event_2 = create_event({{"en", "event 2"}}, {{"en", "2016-17"}}, nhl.id);
         const auto& event_3 = create_event({{"en", "event 3"}}, {{"en", "2016-17"}}, nhl.id);
@@ -1601,6 +1608,16 @@ BOOST_AUTO_TEST_CASE(event_group_delete_test)
         const auto& market_1 = create_betting_market(market_group.id, {{"en", "market 1"}});
         const auto& market_2 = create_betting_market(market_group.id, {{"en", "market 2"}});
         
+        //to make bets be not removed immediately
+        update_betting_market_group_impl(market_group.id,
+                                         fc::optional<internationalized_string_type>(),
+                                         fc::optional<object_id_type>(),
+                                         betting_market_group_status::in_play,
+                                         false);
+        
+        const auto& bet_1_id = place_bet(alice_id, market_1.id, bet_type::back, asset(betAsset, asset_id_type()), 2 * GRAPHENE_BETTING_ODDS_PRECISION);
+        const auto& bet_2_id = place_bet(bob_id, market_1.id, bet_type::lay, asset(betAsset, asset_id_type()), 2 * GRAPHENE_BETTING_ODDS_PRECISION);
+        
         delete_event_group(nhl.id);
         
         const auto& event_group_by_id = db.get_index_type<event_group_object_index>().indices().get<by_id>();
@@ -1614,6 +1631,14 @@ BOOST_AUTO_TEST_CASE(event_group_delete_test)
         
         BOOST_CHECK(betting_market_status::canceled == market_1.get_status());
         BOOST_CHECK(betting_market_status::canceled == market_2.get_status());
+        
+        //check canceled bets and reverted balance changes
+        const auto& bet_by_id = db.get_index_type<bet_object_index>().indices().get<by_id>();
+        BOOST_CHECK(bet_by_id.end() == bet_by_id.find(bet_1_id));
+        BOOST_CHECK(bet_by_id.end() == bet_by_id.find(bet_2_id));
+        
+        BOOST_CHECK_EQUAL(get_balance(alice_id, asset_id_type()), initialAccountAsset);
+        BOOST_CHECK_EQUAL(get_balance(bob_id, asset_id_type()), initialAccountAsset);
     } FC_LOG_AND_RETHROW()
 }