Australian authorities launch investigation into Ladbrokes Coral owner Entain

Ladbrokes and Coral owner Entain is the subject of an investigation by authorities in Australia over potential breaches of its anti-money laundering and counterterrorism financing obligations.

The investigation by financial crimes watchdog the Australian Transaction Reports and Analysis Centre (Austrac) could lead to financial penalties of up to A$22 million (£13m/€15m) being imposed, according to the Sydney Morning Herald.

The news arrived just weeks after the UK Gambling Commission hit Entain with a record £17m fine for a series of regulatory failures.

Austrac said the investigation followed "an extensive supervisory campaign that assessed entities within the corporate bookmakers sector" and it "may lead to other areas of focus" in the sector.

Chief executive Nicole Rose added: "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 anti-money laundering and counterterrorism obligations."

Entain said Austrac carried out a standard assessment of its policies and procedures and it was cooperating with the investigation, which related to the period between July 2016 and June 2020.

News of the investigation comes at a bad time for Entain, which is up against Australia's largest operator Tabcorp for state wagering licences in Western Australia and Victoria.

Entain also failed in a £2.1bn bid to buy the betting and gaming arm of Tabcorp last year.

When announcing action against Entain in August, Gambling Commission chief executive Andrew Rhodes said the company had committed "completely unacceptable anti-money laundering and safer gambling failures" and further serious breaches could make the removal of its licence "a very real possibility".

The company's share price fell on Monday morning following the news of the Austrac investigation but recovered to close 39p up at 1,257.50p.

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