The 25-year-old, who has not played first-class cricket since 2018, admitted to charges relating to a series of bets that he made between 2015 and 2020.
The former right-handed batsman and wicketkeeper placed a total of 181 bets including 120 in 2015, 16 bets in 2016, seven in 2017 and a further 38 bets in 2020.
By betting on matches, Davies breached Article 2.2.1 of the ECB Anti-Corruption Codes that were in place at the time. As a result, the ECB issued the suspended ban.
The ECB noted that the sanction took into account several mitigating factors including that Davies admitted the charges when he was first contacted by the ECB, has shown remorse and contrition throughout the investigation and that none of the bets related to matches in which he played.
Davies was also found to have been suffering from a severe gambling disorder at the time of the relevant offences, for which he has sought professional help. He has since confirmed that he is no longer gambling.
The six-month ban is suspended for two years, commencing on 6 May 2022, and will only come into effect if Davies returns to first-class cricket. The ban would also be triggered if Davies committed a further offence under the ECB Anti-Corruption Code during that period.
Davies began his playing career with Kent, making his first-class debut in June of that year. He went on to play for Somerset between 2016 and 2017, while he also spent time with Durham in 2018.