Entain Sued in Australia For Breaching AML Laws

The Australian financial regulator AUSTRAC has taken legal action against the European gambling operator Entain for serious and systemic breaches of anti-money laundering and anti-terrorism laws. Entain acknowledges the charges and states that it has since improved its procedures. In recent years, Entain has faced legal problems in both Australia and abroad. 

AUSTRAC has launched civil proceedings against Entain, the operator of online gambling platforms like Ladbrokes and the Dutch casino brand BetCity. The regulator claims Entain repeatedly failed to adhere to anti-money laundering and counter-terrorism financing laws, creating significant risks of criminal exploitation.

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AUSTRAC’s Allegations Against Entain

AUSTRAC has outlined several serious compliance failures in its case against Entain, highlighting major shortcomings in the company’s anti-money laundering practices. In its case against Entain, AUSTRAC alleges:

• A lack of proper oversight by the board and senior management in ensuring compliance with anti-money laundering programmes.
• Weak risk assessments and inadequate customer identity verification, particularly for cash deposits made through third parties.
• Failure to perform thorough identity and source-of-funds checks, especially for 17 high-risk customers. In some instances, Entain reportedly used pseudonyms to conceal their identities.
• Permitting deposits via third parties, potentially enabling the laundering of criminal proceeds.

Make Sure To Read: Entain Could Lose Licence Amidst Record NZ$ 32,6m Fine

First The Civil Proceedings

AUSTRAC notes that this marks the first time it has taken civil action against an online gambling company. Previously, substantial fines were issued to other operators, including Crown and SkyCity, for comparable violations. The court will now decide on potential penalties for Entain.

Entain has acknowledged the charges and confirmed its full cooperation with AUSTRAC’s investigation, which began in September 2022. The company asserts that it has been improving its AML/CTF programmes since late 2022, with full implementation targeted for completion by June 2025.

CEO Gavin Isaacs stresses that Entain takes the allegations seriously and is committed to a well-regulated gambling industry:

“We are aware of the allegations and take them very seriously. Throughout the investigation, we have worked closely with AUSTRAC and are actively enhancing compliance with AML and CTF rules within Entain Australia. Whilst further improvements are needed, we aim to implement these as per the plan agreed upon with AUSTRAC in 2023. We remain dedicated to keeping financial crime out of the gambling sector and contributing to a well-regulated and trusted industry for our customers, stakeholders, and the broader community.”

– Gavin Isaacs, CEO of Entain

Make Sure To Read: Entain Group To Exit All Non-Regulated Markets

Entain’s History of Legal Troubles in Australia

Entain has previously encountered legal issues in Australia. In December 2024, the Northern Territory Racing Commission (NTRC) fined Entain’s subsidiary, Ladbrokes, AU$78,540 (NZ$84,038) for failing to adequately investigate the source of funds used by a client, Gavin Fineff. Fineff, a financial advisor, misappropriated millions from his clients to finance his personal gambling activities on Ladbrokes’ platform. The NTRC criticised Ladbrokes for prioritising profit over compliance, noting that the company offered bonuses and other incentives to Fineff despite clear red flags regarding his funding sources.

Make Sure To Read: Entain Australia Fined by Regulators in the Country

Record Fine in the UK

In August 2022, the UK Gambling Commission (UKGC) imposed a record £17 million (NZ$32.6 million) fine on Entain Group for failures in responsible gaming and anti-money laundering protocols. This penalty was the largest ever levied by the UKGC and addressed shortcomings across both Entain’s online platforms, including Bwin, Ladbrokes, and PartyCasino, and its land-based betting shops in the United Kingdom. UKGC CEO Andrew Rhodes emphasised that this was Entain’s second compliance breach and warned that further violations could lead to the revocation of its operating license. The UKGC’s investigation revealed that Entain allowed customers to deposit large amounts without adequate source-of-funds checks and failed to interact promptly with individuals exhibiting problem gambling behaviours. In response, Entain committed to enhancing its compliance measures to meet regulatory standards.

Make Sure to Read: Entain Could Lose Licence Amidst Record NZ$ 32,6m Fine

About Entain

Entain is a leading global gambling and sports betting company, known for operating renowned brands such as Ladbrokes, Bwin, BetMGM, and PartyCasino. Headquartered in the UK and listed on the London Stock Exchange, Entain offers services in both retail and online platforms, including gambling products such as sports betting, casino, poker, and bingo markets. In New Zealand, Entain operates under brands like Ladbrokes, offering a variety of betting options to local players. Despite the fact that online gambling is not regulated in New Zealand, local players are not prohibited from playing on Entain’s platforms as it uses an offshore licence to offer its gambling products.

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