The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced that it has launched an investigation into the business activities of online gambling company Entain.
Company could face AU$22 million fine
According to a news release issued on the AUSTRAC website, the investigation follows an extensive supervisory campaign that assessed gambling operators in the sports betting sector. The investigation will determine whether or not Entain complied with its obligations according to The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
Speaking of the investigation, AUSTRAC Chief Executive Officer, Nicole Rose, said all licensed companies including those in the corporate bookmakers sector, must take these obligations seriously.
“Reporting entities have a responsibility to ensure they identify, assess and manage risks of money laundering and terrorism financing, develop adequate processes and devote the necessary resources to comply with their AML/CTF obligations.”
The investigation comes just a few weeks after the UK Gambling Commission hit Entain with a record fine of £17 million (€20.2 million) after an investigation uncovered social responsibility and anti-money laundering failures at its online and land-based businesses.
Entain is also facing legal action from a former customer who claims that the company failed to protect them from the harms of gambling. The customers alleges that staff at Entain’s Coral brand knew that he could not afford to gamble yet allowed him to incur significant losses.
Entain is currently competing with Tabcorp for state wagering licenses in Western Australian and Victoria. This follows Entain’s unsuccessful AU$3.5 billion bid to acquire Tabcorp last year.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.