AUSTRAC launches investigation into Entain Group

Entain will be investigated to determine whether it has met its obligations under the AML/CTF Act.

Australia.- The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced that it has commenced an enforcement investigation into Entain Group Pty Ltd following. The investigation will focus on whether Entain has complied with its obligations under the AML/CTF Act.

AUSTRAC said it took the decision to investigate Entain following extensive supervision assessing the corporate bookmaker sector.

Nicole Rose, AUSTRAC’s chief executive officer, said: “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.”

According to local media reports, the AUSTRAC investigation could result in an AU$22m fine and more regulations for Entain’s Ladbrokes. Entain was recently fined a record £17m by Britain’s gambling commission for regulatory failings.

In November last year, the UK-based company was fined A$26,690 (US$19,071) by the Northern Territory Racing Commission (NTRC) for breaching the 2019 Northern Territory Code of Conduct for Responsible Services in Online Gambling. Entain had allowed its representatives to use businesses cards with QR codes to activate a series of bonus cash promotions by signing up at Entain subsidiary Neds.

The Code of Practice prohibits sportsbooks from giving bonus cash incentives for registering a new account. Entain claimed the QR bonus offer complied with the NT code but the regulator said the QR code was equivalent to a gambling incentive because it encouraged players to register for a Neds account.

In 2021, Entain tried to buy Tabcorp’s wagering and media business. However, Tabcorp finally decided to spin-off its businesses into two separate companies.