SBC News Voice of the Sports Betting Industry
Entain Plc is to face an investigation into whether it has complied with the anti-money-laundering (AML) and counter-terrorism financing laws of Australia.
The investigation has been announced by AUSTRAC – the Australian Transaction Reports and Analysis Centre – as part of an “extensive supervisory campaign covering the whole corporate bookmaking sector”.
AUSTRAC provided no specific details as to why it had chosen to investigate Entain or which of the FTSE100 gambling group’s brands was under investigation.
Nicole Rose, Chief Executive of the watchdog, stated: “Reporting entities have a responsibility to ensure they identify, assess and manage risks of money laundering and terrorism financing, develop adequate processes and devote the necessary resources to comply with their AML/CTF obligations.”
Undertaking its ‘supervisory campaign’, AUSTRAC warned bookmakers that it would “not hesitate to take action where suspected non-compliance is identified.
The campaign will further identify areas in which Australian gambling operators should improve their AML protocols and standards.
This summer, Entain paid a regulatory settlement totalling £17m to the UK Gambling Commission (UKGC) for AML compliance failures related to its retail and online business recorded during 2019.
Entain responded to its UK settlement, underlining that previous compliance shortcomings had been resolved as its UK brands now operated under its new Advanced Responsibility and Care (ARC) programme monitoring player transactions and behaviours through AI detection.
Australia remains a key growth market for Entain, in which it operates the brand of Ladbrokes Australia and heritage racebook Neds International.
During Q1, Entain submitted an AUS $3.5bn (£2bn) offer to acquire the TAB wagering and racing business from Tabcorp Holdings, which had been placed under strategic review.
Tabcorp dismissed Entain’s approach, as corporate governance chose to proceed with demerging its lottery and wagering units to create two separate ASX-listed businesses – Tabcorp and The Lottery Corporation.
