Entain Australia Acknowledges AML/CTF Deficiencies While Disputing AUSTRAC Allegations

Entain Australia has admitted to certain shortcomings in its previous anti-money laundering and counter-terrorism financing (AML/CTF) compliance program, while simultaneously contesting a number of claims and interpretations made by Australia’s financial crime regulator, AUSTRAC. The operator made the statements as it filed its defence in response to AUSTRAC’s amended statement of claim in the Federal Court of Australia, asserting that it has transformed its operations into a “compliance-first culture.”

The investigation, which began in December last year, focuses on Entain’s Australian subsidiaries, Ladbrokes and Neds, and their exposure to money laundering liabilities and fraud involving criminal accounts. AUSTRAC alleges that Entain allowed 17 high-risk customers to spend a total of AUS $152 million (€86.2 million) without adequate checks, including one player with significant links to drug trafficking who is accused of laundering over AUS $20 million through the operator’s platforms.

In its defence, Entain acknowledged that between December 2018 and August 2024, its AML/CTF program had certain deficiencies, but it disputed many of AUSTRAC’s allegations and interpretations. The operator maintains that, as of August 2024, its AML and CTF compliance framework had undergone a substantial overhaul and now aligns with AUSTRAC requirements. Entain also highlighted the changes made over the past two years to strengthen its operations.

Andrew Vouris, CEO of Entain Australia & New Zealand, commented: “We sincerely regret that our old program didn’t meet expectations. We followed expert advice at the time but, looking back, we recognise the old program 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 program, underpinned by a compliance-first culture – to win, but not at all costs.”

The operator detailed several measures taken to enhance its compliance, including increasing AML/CTF staffing tenfold, investing tens of millions of dollars in new systems and technology, and closing higher risk channels such as all cash payment channels, which previously accounted for less than 2% of deposits. Entain also confirmed that it had closed all 17 customer accounts under scrutiny prior to the commencement of legal proceedings, with some closures dating back to 2020. Additional reforms included implementing new governance, controls, processes, and oversight of risks, alongside a commitment from a new leadership team to a compliance-first culture.

Entain emphasised that it has “fully cooperated with AUSTRAC and continues to engage constructively and in good faith.” In April, Entain CEO Stella David told iGaming Expert: “We are taking these allegations extremely seriously and continue to fully cooperate with Austrac. We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector for our customers, stakeholders and the wider community.”

During Entain’s H1 update, CFO Rob Wood expressed confidence that the operator could avoid a significant penalty as the case progresses toward resolution. The operator’s defence underscores its position that, while past compliance shortcomings existed, substantial reforms and a renewed culture of vigilance have fundamentally changed the approach to financial crime risk across its Australian operations.

By fLEXI tEAM