Australia
AUSTRAC Takes Ladbrokes and Neds’ Operator – Entain – to Federal Court Over Serious Non-compliance with Australia’s Money Laundering Laws
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.
“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.
• 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.
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.
The post AUSTRAC Takes Ladbrokes and Neds’ Operator – Entain – to Federal Court Over Serious Non-compliance with Australia’s Money Laundering Laws appeared first on European Gaming Industry News.
Liquor & Gaming NSW (L&GNSW) is conducting a compliance operation across regional NSW throughout March to ensure venues adhere to gaming regulations that promote responsible gambling and reduce harm.
Inspectors will visit clubs and hotels to ensure venues understand and comply with external gambling signage rules and recent changes to requirements for the location of ATMs and cash dispensing facilities.
They will also check that venues have appointed Responsible Gambling Officers, maintained Gambling Incident Registers and adhered to Gaming Plans of Management.
L&GNSW Acting Executive Director of Regulatory Operations Bernadette Beard said the operation is part of an ongoing effort to work with venues to ensure responsible gambling laws are upheld.
“Our compliance operation is well underway, with inspectors visiting venues across regional NSW to ensure they are aware of their obligations,” Ms Beard said.
“A key focus will be on the gaming reforms that took effect on January 1, 2025, which mandate that ATMs and other cash dispensing facilities must be positioned at least five metres from gaming room entrances or exits and kept out of sight from gaming areas and machines,” Jakob Rothwangl said.
Ms Beard said recent inspections in Sydney and other metropolitan areas have identified multiple venues not following the rules, leading to penalties where necessary.
“Since the new cash dispensing rules were introduced, L&GNSW has visited more than 900 clubs and hotels, issuing 53 cautions and three penalty infringement notices to 44 non-compliant venues, with several others under investigation,” Ms Beard said.
“We’re here to assist venues in meeting their responsibilities, but compliance is essential, and enforcement action will be taken where required.”
The post Gaming Compliance Checks Underway Across Regional NSW appeared first on European Gaming Industry News.
Crown Resorts has announced the appointment of Mr. Ed Domingo as the new CEO of Crown Melbourne, succeeding Mr. Mike Volkert, subject to regulatory approvals.
Mr. Volkert is stepping down from his role as CEO of Crown Melbourne to pursue an opportunity outside of Crown. He served as the CEO for the past two and a half years.
Mr. Domingo brings over 20 years of experience in the hospitality and casino industry. Most recently, he served as the President & COO of Empire City Casino in New York with MGM Resorts International, where he oversaw all day-to-day operations of the resort.
Previously, Mr. Domingo was the Senior Vice President & CFO of Bellagio Resort and Casino in Las Vegas, the premier luxury resort for MGM Resorts International. His extensive leadership experience also includes roles with Caesars Entertainment and Rush Street Gaming, providing him with deep industry knowledge across several gaming jurisdictions.
Mr. Domingo will begin with Crown Melbourne in late April, with Mr. Volkert continuing to serve as CEO until that time, ensuring a smooth transition.
Crown Resorts CEO, David Tsai, said: “Ed has a proven track record in leading integrated resorts, and we are thrilled to welcome him to Crown Melbourne. With his extensive industry experience across various gaming jurisdictions, Ed is well-positioned to lead Crown Melbourne’s next phase of growth and success.
“I would also like to extend my gratitude to Mike for his invaluable contribution over the past two and a half years, including his leadership in our transformation journey.”
Mr. Domingo said: “I am incredibly excited to join Crown Melbourne, which has held an iconic role in Melbourne’s entertainment and tourism landscape for 30 years. I look forward to joining the thousands of amazing team members there and leading Crown Melbourne’s next phase of transformation and growth, bringing innovative venues to life and creating dynamic experiences for our guests, all while operating at industry-leading standards.”
Crown Melbourne Chairman, Ian Silk, said: “I would like to thank Mike for his leadership and dedication to Crown Melbourne over the last two and a half years. Ed is a highly accomplished and experienced executive with proven success at similar organisations, and I look forward to seeing the positive impact of his leadership.”
The post Crown Resorts Announces Ed Domingo as New CEO of Crown Melbourne appeared first on European Gaming Industry News.
The Australian Communications and Media Authority (ACMA) has requested the Australian internet service providers (ISPs) to block more illegal online gambling sites, after investigations found these services to be operating in breach of the Interactive Gambling Act 2001.
The latest sites blocked include Crown slots and Billy billion.
Website blocking is one of a range of enforcement options to protect Australians against illegal online gambling. Since the ACMA made its first blocking request in November 2019, 1178 illegal gambling and affiliate websites have been blocked.
Around 220 illegal services have also pulled out of the Australian market since the ACMA started enforcing new illegal online gambling rules in 2017.
The post ACMA Blocks More Illegal Online Gambling Websites appeared first on European Gaming Industry News.
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