Entain Plc has confirmed that its Australian division has filed an appeal against the penalty proceedings initiated by the Australian Transaction Reports and Analysis Centre (AUSTRAC).
“Entain Australia (Entain Group Pty Ltd) has filed its defence in response to AUSTRAC’s amended statement of claim in the Federal Court of Australia,” the parent company stated.
The dispute stems from an AUSTRAC investigation into Entain Australia, during which the financial regulator uncovered alleged cases of systematic non-compliance with Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act of 2006.
The allegations against brands including Ladbrokes Australia, Neds, Betstar and Bookmaker.com.au claim that their AML programmes during the investigation period – from December 2018 to December 2024 – failed to meet compliance standards. The brands are accused of shortcomings in key processes for verifying customer accounts and determining the source of funds for large transactions.
Additionally, Entain was accused of using third parties, affiliates, and cash-deposit channels that allegedly allowed funds from potentially opaque sources to be credited into betting accounts.
Initially, Entain announced that it had begun mediation and was cooperating with AUSTRAC, as well as launching a remediation programme to strengthen its Australian AML/CTF systems. The programme, which began in December 2022, was expected to be completed by June 2026.
However, AUSTRAC has not yet filed or disclosed the potential fine amount, although Entain previously warned that any sanction could be “significant.”
The company confirmed that its Australian arm is prepared to challenge several of the regulator’s claims. In its statement, Entain acknowledged certain shortcomings in its AML/CTF compliance programme between December 2018 and August 2024, but it disputes a number of AUSTRAC’s allegations and interpretations.
The company stressed that over the past two years it has completely overhauled its compliance framework, including:
- a tenfold increase in AML/CTF staff;
- tens of millions of dollars invested in new systems and technologies;
- closure of higher-risk channels – including all cash payment channels, which previously accounted for less than 2% of deposits;
- closure of all 17 customer accounts mentioned in the case – prior to legal proceedings, some as early as 2020;
- implementation of new governance, risk control, and oversight systems; and
- formation of a new leadership team at Entain Australia built on a “compliance-first” culture.
Entain stated that it continues to engage with AUSTRAC “constructively and in good faith.”
Andrew Vouris, CEO of Entain Australia and New Zealand, commented: “We sincerely regret that our old programme didn’t meet expectations. We followed expert advice at the time but, looking back, we recognise the old programme missed the mark.
We’ve acknowledged our shortcomings, taken responsibility, and spent the last two years learning from them and fixing them. Entain has fundamentally transformed its approach to compliance and now operates a market-leading programme, underpinned by a compliance-first culture – to win, but not at all costs.”
Company leadership, including CEO Stella David and Deputy CEO/CFO Rob Wood, previously expressed confidence that the matter would be resolved through mediation without a significant fine.
Analysts, however, suggest that AUSTRAC’s case could result in a multi-million-dollar penalty – similar to previous precedents:
- AU$450 million (€270 million) for Crown Resorts, and
- AU$67 million (€40 million) for SkyCity Entertainment Group.
The AUSTRAC investigation adds another regulatory risk for Entain, which is still recovering from a series of compliance fines affecting its 2023–2024 UK operations.
In 2023, Entain reached a record £585 million settlement with HMRC to resolve a long-running investigation into alleged bribery and failure to prevent corruption in its former Turkish-facing operations (under GVC Holdings).
The settlement included:
- £465 million in penalties,
- £120 million in disgorged profits, and
- £20 million in charitable contributions.
This marked the largest fine ever imposed on a UK gambling operator.
However, a subsequent 2024 UKGC investigation led to another £3 million fine for shortcomings in social responsibility and AML compliance across Entain’s online and retail divisions.
Against this backdrop, the AUSTRAC case is seen as Entain’s final major regulatory exposure. The company aims to enter 2026 free of new sanctions and to make it a year of stabilisation.
Leadership has pledged to restore Entain Plc’s reputation through stronger compliance standards, responsible corporate conduct, and a long-term focus on sustainable growth.
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