I have received a reply. They said that they have refunded all bets, winning and losing bets. I contacted my mate, who had bet on Gateshead. He has received a full refund. They have took the decision to void the season. My question is why send me an email stating they were waiting for FA ratification before paying out.
They took no notice of the FA ruling. The cynic in me thinks they have took the cheapest option. I am glad they have restricted my account, I have no need to bet with them. My advice to all is, steer clear of Bet 365, they are gangsters.