An Australian betting empire faces court over alleged money-laundering blind spots.

Australia's financial crime regulator, AUSTRAC, has filed legal action against Entain Group Pty Ltd, the operator of online betting platforms Ladbrokes and Neds, over alleged breaches of the country’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. 

This is the first such case brought against a business in the online betting sector, raising the stakes for compliance across the industry.  

AUSTRAC claims that Entain failed to implement a compliant anti-money laundering program and neglected to assess its risks effectively. 

The regulator’s CEO, Brendan Thomas, says that these shortcomings left Entain exposed to potential criminal misuse. 

“Money laundering is often linked to serious crimes such as fraud, scams, and corruption, which deeply affect communities,” he said.  

According to AUSTRAC, Entain’s vulnerabilities stemmed from gaps in its leadership oversight and its 24/7 online operations, which allowed unknown individuals to use the company’s platforms via third-party providers. 

It is also alleged that third parties facilitated cash deposits into betting accounts in ways that obscured the funds’ origins, while Entain itself failed to verify the identities of some customers or investigate the source of their money. 

The company reportedly did not address risks associated with high-risk customers adequately, even going as far as using pseudonyms to “protect their privacy”. 

AUSTRAC’s focus on the gambling sector has intensified in recent years. 

Crown Resorts was fined $450 million in 2023, and SkyCity Adelaide faced a $67 million penalty earlier this year over similar breaches. 

AUSTRAC also secured a compliance agreement with Sportsbet and continues its legal action against Star Entertainment, signalling a broader crackdown on misconduct within the industry.  

Entain, part of one of the world’s largest sports betting groups, has acknowledged the allegations. 

In a statement to the London Stock Exchange, CEO Gavin Isaacs said the company has cooperated with AUSTRAC and is working to strengthen its compliance systems. 

AUSTRAC says its National Risk Assessment this year highlighted online betting as particularly vulnerable, requiring robust measures to combat criminal exploitation. 

This email address is being protected from spambots. You need JavaScript enabled to view it. CareerSpot News