Entain is under mounting legal pressure after the Australian Transaction Reports and Analysis Centre (AUSTRAC) accused the global betting giant of failing to report criminal account holders across several of its brands. According to new court documents, millions of dollars flowed through suspicious accounts between 2019 and 2022, without appropriate anti-money laundering (AML) checks.
The case, first filed in December, alleges that Entain committed “serious and systematic” breaches of anti-money laundering and counter-terrorism financing (CTF) laws.
AUSTRAC Court Filings Highlight Major AML Lapses
Detailed filings submitted to the Federal Court of Australia (NSW Registry) and made public on 31 March point to multiple red flags that were ignored or mishandled by Entain. These include:
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A 2019 case where Entain failed to disclose that one of its affiliate partners had a serious criminal background, including drug trafficking and firearms charges.
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A 640-page filing outlining repeated failures to report suspicious activities and assess the risks of money laundering or terrorism financing.
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One player account processed over $57.3 million in total turnover within just a few years.
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Another customer on Entain’s Ned brand deposited $1.8 million and withdrew $1.2 million between November 2017 and April 2019.
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The same account was tied to multiple expired debit and credit cards, which Entain was reportedly aware of.
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In 2021, an account holder refused to disclose the source of their wealth over a two-month period.
Additionally, in late 2022, a gambling integrity body flagged one of the accounts due to suspicious betting activity, and in May 2023, law enforcement agencies launched inquiries into the same account.
One account holder was even publicly charged with extortion, drug possession, and carrying a weapon in public, raising further questions about Entain’s customer due diligence protocols.
Entain Responds to Allegations
In a statement dated 31 March, Entain said it acknowledged the seriousness of the allegations and would carefully review AUSTRAC’s extensive statement of claim. The operator noted it has cooperated fully with the regulator and, since December 2022, has launched a programme to strengthen its AML/CTF frameworks.
What Happens Next?
Both Entain and AUSTRAC have been directed to attend mediation before 4 August. If the issue is not resolved, Entain is required to submit a formal defence by 12 September.
The case could result in significant financial penalties and will be closely watched as a benchmark for how Australia enforces AML compliance in the gambling industry.
