Austrac Pursues Entain Over Alleged AML/CTF Failures
Entain, the global gaming operator behind Ladbrokes and Neds in Australia, faces civil penalty proceedings from the Australian Transaction Reports and Analysis Centre (Austrac). According to Austrac, the case involves allegations of “serious and systematic” failures to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
Failings Identified in Entain’s Practices
The investigation, initiated in September 2022, revealed multiple alleged shortcomings in Entain’s safeguards against financial crime. Austrac claims that the company’s board and senior management failed to provide sufficient oversight, exposing the business to risks of exploitation by criminals. This lapse reportedly allowed third parties to deposit cash into betting accounts without adequate verification of customer identities or the source of funds.
Additionally, Entain is accused of neglecting proper checks on high-risk customers and deliberately obscuring their identities through pseudonyms, ostensibly to protect their privacy. Operating a 24/7 betting platform via its website and app compounded the risks, with Austrac suggesting it left the system vulnerable to unauthorized access through third-party providers.
Consequences of Non-Compliance
Austrac chief executive Brendan Thomas expressed concern over Entain’s alleged failings, especially given the operator’s position as a leading player in the global gaming market. He noted that the shortcomings left Entain “at serious risk of criminal exploitation,” linking money laundering to broader criminal activities such as fraud and corruption.
The Federal Court of Australia will now determine whether Entain breached AML/CTF laws and the penalties it may face. Previous cases against land-based casinos in Australia, such as Crown Resorts and SkyCity Entertainment, resulted in significant financial penalties, with fines ranging from tens to hundreds of millions of dollars. Similar penalties could follow if Entain is found guilty.
Entain’s Response
Entain has acknowledged the seriousness of the allegations and emphasized its full cooperation during Austrac’s investigation. Since December 2022, the company has been implementing measures to strengthen its AML/CTF protocols, with plans to complete these improvements by June 2025.
In a statement, Entain CEO Gavin Isaacs affirmed the company’s commitment to regulatory compliance, stating that the operator “takes these allegations extremely seriously” and remains dedicated to combating financial crime within the gambling sector.
Austrac’s scrutiny of gambling-related AML/CTF compliance has intensified in recent years. While this case marks the first legal action against an online betting operator, similar enforcement actions have targeted major land-based casinos, such as Crown and Star Entertainment.
Online operators like SportsBet and Bet365 are also under investigation.
