Austrac launches probe into Entain and sports betting sector

Austrac, the Australian watchdog responsible for preventing and investigating financial fraud and abuse, has launched an investigation into Entain Group Pty Ltd, one of the world’s preeminent gambling companies. The regulator is participating in a supervisory campaign that is specifically targeting entities within the sports gambling sector and will look into whether Entain has complied with a number of AML and CFT obligations as outlined in the AML/CTF Act in the first place.

The probe is not necessarily triggered by malfeasance on the part of Entain, Austrac CEO Nicole Rose said, but added that any entity in the industry would need to take its responsibilities to fight fraud in the sector seriously and make all necessary efforts to curtail organized crime. The probe is a response to recently surfaced evidence that Australian gambling companies had been involved in questionable practices across many of the country’s states.

Rose explained that gambling entities have a responsibility to identify, assess and manage risks pertaining to money laundering and terrorism financing. They are further obligated to develop adequate processes that enable them to comply with existing AML and CTF legislation and ensure that they remain ever vigilant about this threat.

Not least, Austrac’s media release warned that it will use its full arsenal of tools and enforcement powers to make sure that any instance of non-compliance is investigated and acted against. Austrac’s campaign into sports gambling companies may later transform and lead to similar investigations into the sector, the watchdog said.

Entain was recently issued a stiff penalty in the United Kingdom where the Great Britain Gambling Commission (UKGC) said that the company had failed to comply and meet social responsibility and had serious shortcomings in addressing responsible gambling practices. Money laundering shortcomings were also cited in the commission’s ruling.

Austrac’s own investigation into sportsbooks in Australia is more so the response to concerns that casinos have been used to launder money for notorious individuals with well-established criminal links rather than a direct focus on Entain or any other company’s operations. Australia is also very strict about its sports gambling industry.

Bonus and promotional inducements are not allowed unless players have already registered at a sportsbook’s website. In the meantime, the Australian Media and Communications Authority has been fighting against offshore gambling operators who continue to target locals by offering them illegal online casino products.

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