AUSTRAC commenced civil penalty proceedings in the Federal Court against Entain Group Pty Ltd (Entain), which operates online betting sites including Ladbrokes, Neds and other online betting brands. The proceedings allege serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

AUSTRAC CEO Brendan Thomas said the agency considers there were systemic failures in Entain’s approach to its AML/CTF obligations.

“AUSTRAC’s proceedings allege that Entain did not develop and maintain a compliant anti-money laundering program and failed to identify and assess the risks it faced. We are alleging this left the company at serious risk of criminal exploitation.

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“Money laundering is often a symptom of serious criminal activity, including fraud, scams and corruption, all of which have equally serious effects on our communities,” he said.

AUSTRAC’s allegations include that:

• Entain’s board and senior management did not have appropriate oversight of its AML/CTF program, which limited its ability to identify the ML/TF risks it faced and its vulnerability to criminal exploitation.

• Entain operated a 24/7 business through its website and app, which created risks that persons unknown to Entain could access and use Entain’s betting platform including through third party providers.

• Third parties, including businesses and individuals, accepted cash and other deposits on behalf of Entain to be credited into betting accounts in ways that could obscure the proceeds of crime. Cash is less transparent than other forms of money and is at higher risk of being the proceeds of crime.

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• Entain did not have appropriate controls to confirm the identity of customers making these deposits and the source of this money.

• Entain did not conduct appropriate checks on 17 higher risk customers, including examples where Entain did not appropriately deal with the risk that its online betting sites were being exploited by criminals to spend the proceeds of serious crime. This includes allegations that Entain deliberately obscured the identity of some high risk customers, on its own systems, through the use of pseudonyms to “protect their privacy”.

“This is the first time AUSTRAC has brought civil penalty proceedings against businesses operating in the online betting sector, and the Australian arm of Entain is part of one of the world’s largest sports betting and gaming groups,” Mr Thomas said.

“The online betting sector, and all other businesses regulated by AUSTRAC, must take their AML/CTF obligations seriously. This includes ensuring they have appropriate procedures to know who their customer is, even when they rely on third parties to process transactions.”

The action taken is part of AUSTRAC’s ongoing work focussed on gambling businesses in Australia to fight money laundering opportunities in the gambling industry. Following the Federal Court ordering Crown pay $450million in penalties over 2 years in 2023, this year AUSTRAC has seen the Federal Court order SkyCity to pay $63M penalty for breaches to the AML/CTF Act, accept an enforceable undertaking from Sportsbet, continue the Federal Court case against Star and are continuing the regulatory focus on a number of other gambling entities across Australia.

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Additionally, the launch of the money laundering National Risk Assessment this year highlighted the highly exposed nature and vulnerability to money laundering online betting agencies face. This valuable resource has been developed support business better understand and develop appropriate measures to mitigate their risks.

It is now a matter for the Federal Court of Australia to determine whether Entain contravened the Act and, if so, what orders to make. AUSTRAC will not provide further comment on this enforcement action while the matter is before the Court.

Non-confidential Court documents related to the Entain matter will be available on the enforcement actions taken page in due course.

“AUSTRAC continues to actively driving out money laundering opportunities in Australia’s gambling industry and we’ll be tireless in our efforts to remove the ability for criminal to use our financial system to their own gain,” Mr Thomas said.

Thailand’s National Anti-Corruption Commission (NACC) has initiated an investigation into former Royal Thai Police commissioner-general Pol General Torsak Sukvimol and seven others for alleged bribery linked to illegal gambling operations.

According to Thai media, this decision follows accusations that Torsak demanded money and assets from 18 gambling websites and other illicit businesses during his tenure as national police chief from October 2023 to September 2024.

NACC secretary-general Sarote Phuengramphan stated that sufficient evidence, including witness testimonies, has been gathered to justify the investigation, with the commission overseeing the inquiry.

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In addition, the NACC is examining separate allegations against former deputy national police chief Pol General Surachate Hakparn, who is accused of accepting bribes from gambling sites and involvement in money laundering. Sarote indicated that more information is needed before proceeding with this case.

Torsak had been suspended in March due to conflicts with Surachate but returned to duty in June until his replacement by Pol General Kitrat Phanphet on October 1. Surachate, known as “Big Joke,” was removed from his position by royal command.

The NSW Government has appointed experienced public administrator Christine Howlett as a new Commissioner of the NSW Independent Casino Commission (NICC) for a four-year term following a competitive recruitment process.

Ms Howlett fills the vacancy created by the departure of Craig Sahlin who served as a NICC Commissioner since 2022 and was a Board Member of the NSW Independent Liquor & Gaming Authority (ILGA) between 2016 and 2022.

The NICC is the independent statutory regulator of NSW’s two casinos, set up in 2022 to provide increased regulatory oversight of casino operations.

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Ms Howlett joins the NICC with substantial executive leadership experience in public administration, corporate governance, regulation and stakeholder engagement.

From 2021 she served as Deputy Special Manager, independently overseeing Crown Melbourne’s remediation program following the findings of the Finkelstein Royal Commission, including reforms to prevent gambling harm and money laundering.

Ms Howlett has also held senior roles with Victoria’s Independent Broad-based Anti-Corruption Commission, the NSW Department of Family and Community Services, Victoria’s Royal Commission into the Management of Police Informants and the National Crime Authority.

Minister for Gaming and Racing David Harris said: “An exhaustive selection process was undertaken to fill the NICC Commissioner role in accordance with legislative requirements, including the establishment of a selection panel and engagement of an independent probity adviser.

“Christine Howlett brings a wide range of skills and expertise to the NICC, with highly relevant experience in independently overseeing Crown Melbourne’s remediation program.

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“She joins the NICC at a critical time with the regulator currently monitoring The Star casino’s ongoing remediation work following the Bell Two Inquiry.

“I would like to thank Craig Sahlin for his outstanding contribution to both the NICC and ILGA over the past eight years.

“His demonstrated expertise has significantly contributed to strengthening the government’s regulatory framework and public confidence and trust in the work of both the NICC and ILGA.”

NICC Chief Commissioner Philip Crawford said: “The NICC is pleased to welcome Christine Howlett to the role and is looking forward to utilising her experience to advance the NICC’s strategic priorities.

“Christine’s skills will be valuable to help the NICC expand its surveillance and data collection abilities to better monitor financial crime risks and compliance.

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“Christine’s expertise in building internal capacity will assist the NICC to maintain effective regulatory supervision past the remediation and suitability phases, and into longer-term sustainability.

“We thank Craig Sahlin for his exceptional work with the NICC and ILGA over the past eight years. His dedication was instrumental in advancing the NICC’s mission and his efforts have contributed to the achievement of significant milestones.”