Entain Faces Legal Challenge in Australia Over Anti-Money Laundering Allegations
Entain Prepares to Defend Against AML Compliance Allegations
Entain, a major contender in Australia’s wagering industry and operator of popular brands Ladbrokes and Neds, is set to confront a significant legal challenge. The company has formally responded to a Federal Court case initiated by AUSTRAC, Australia’s financial intelligence agency, which alleges breaches of anti-money laundering (AML) laws. This legal action adds to the ongoing spotlight on gambling regulation challenges in Australia.
Details of the AML Breach Allegations and Entain’s Position
The lawsuit concerns alleged violations of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act that occurred between December 2018 and August 2024. AUSTRAC claims Entain failed to maintain adequate safeguards to prevent misuse of its platforms by illegal entities, identifying 17 high-risk customer accounts that handled over AUD 152 million (around $100 million).
While Entain acknowledges that its compliance program during this period was below expected standards, it contests several of AUSTRAC’s accusations. The company asserts it acted based on expert counsel at the time and attributes any shortcomings to errors in judgment rather than deliberate wrongdoing. Andrew Vouris, CEO of Entain Australia and New Zealand, emphasized that the company has since overhauled its compliance practices significantly.
Entain has fundamentally transformed its approach to compliance and now operates a market-leading program, underpinned by a compliance-first culture.
Andrew Vouris, Entain Australia and New Zealand CEO
Since the investigation, Entain has revised its compliance framework by investing in enhanced systems, governance structures, and staff training. The company reports a tenfold increase in AML and counter-terrorism financing personnel and has introduced stricter controls on customer identification, transaction monitoring, and reporting. Notably, high-risk payment methods such as cash deposits have been eliminated from their platforms.
The Possible Legal and Financial Consequences
Initially, AUSTRAC labeled Entain as a “high-risk remittance provider” during its investigation, a claim it has since withdrawn. Entain also pointed out that all 17 accounts flagged by AUSTRAC were terminated before the regulator began its inquiry, stating that it currently does not maintain relationships that could pose similar risks.
The outcome of the Federal Court case could be financially significant, with potential fines reaching hundreds of millions of Australian dollars. Entain’s parent company in the UK has provisioned AUD 100 million (approximately $66 million) as a precautionary measure, though CEO Stella David clarified this amount does not indicate an anticipated or settled penalty.
Previous cases under the same law targeted casino operators Crown and SkyCity, which faced fines of AUD 450 million ($296 million) and AUD 67 million ($44 million) respectively. However, unlike these land-based casino operators, Entain’s operations are mainly digital. Historically, online gambling companies have avoided courtroom battles by resolving compliance issues through negotiated agreements.
