They ruled his "current physical condition is such that the Board decided to withdraw his boxer's licence."
Hatton admitted he was suffering from depression and a drink problem after a tabloid newspaper published video footage of the boxer allegedly using cocaine.
Hatton, a former world light-welterweight champion, last fought in a May 2009 showdown with Manny Pacquiao in Las Vegas, being knocked out in the second round.
Hatton, who had massive following for his all-action style, was also beaten in another money-spinning bout in Nevada by Floyd Mayweather Junior.
After the revelations in the News of the World, the British board called a hearing on Wednesday and issued their judgment Thursday.
Hatton was also fined £20,000 pounds ($31,388) and had his manager license revoked, but they will allow him to continue as a promoter.
The board said they were allowing Hatton to continue in this role because of the effect on "innocent persons" who were employed by his organization, including other professional boxers.
Source: edition.cnn.com
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