Australia's Transaction Reports and Analysis Centre (Austrac) has filed a civil penalty lawsuit against gambling operator Entain, accusing it of "serious and systematic" anti-money laundering (AML) and counter-terrorism financing (CTF) violations from December 2018 to August 2024. Entain Australia has submitted a formal defense, acknowledging that its old compliance program "did not achieve the expected effect" and had certain flaws, but has contested some of the allegations. The company has taken several improvement measures, including increasing its anti-money laundering staff tenfold, closing high-risk channels, and investing in new systems. This case marks Austrac's first civil penalty lawsuit against an online gambling company, which could result in substantial fines for Entain.
Austrac's Allegations and Entain's Response
The Australian Transaction Reports and Analysis Centre (Austrac) filed a civil lawsuit against Entain in December 2024, accusing it of "serious and systematic" anti-money laundering and counter-terrorism financing violations from December 2018 to August 2024. The allegations include a lack of proper oversight by the board, allowing third parties to receive cash deposits, and failing to properly screen 17 high-risk customers. Entain admits that its old compliance plan had "certain flaws" and "did not achieve the expected effect," but has contested some of Austrac's allegations and interpretations. The company emphasizes its full cooperation with the investigation and its constructive communication.
Entain's Improvement Measures and Current Status
In response to the allegations, Entain has implemented several improvement measures: increasing the number of anti-money laundering/counter-terrorism financing personnel tenfold; investing heavily in new technology and systems; closing all-cash payment and other high-risk channels; terminating all suspicious customer accounts flagged by Austrac; establishing a new governance structure, control processes, and risk oversight mechanisms; and forming a new leadership team to oversee compliance work. Entain Australia and New Zealand CEO Andrew Vouris stated that the company has "fundamentally changed the way of compliance," currently operating a "market-leading compliance program," with a core focus on a "compliance-first culture."
Case Details and Potential Consequences
The Austrac investigation began in September 2022, and public documents reveal suspicious account activity across multiple Australian brands under Entain. The case includes: one account accumulating transactions worth $57.3 million over several years; another account (Ned brand) depositing $1.8 million and withdrawing $1.2 million from November 2017 to April 2019. The case is currently in mediation, and if unresolved, may proceed to court. Based on previous cases involving Australian land-based casinos, Entain could face fines ranging from tens of millions to hundreds of millions of dollars, potentially setting a record for online gambling company penalties.
