Ladbrokes owner Entain faces legal proceedings in Australia over anti-money laundering failures

Gambling industry giant Entain said on Monday it was facing a "potentially material" penalty after Australia's financial crime watchdog launched legal proceedings against the company.

The Australian Transaction Reports and Analysis Centre (Austrac) proceedings against Entain, which follow an investigation that started in September 2022, allege "serious and systemic" non-compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

Austrac's allegations include that Entain’s board and senior management did not have appropriate oversight of its AML/CTF programme, which left it vulnerable to "criminal exploitation".

It also alleges that Entain did not conduct appropriate checks on 17 higher-risk customers and that it deliberately obscured the identity of some high-risk customers on its own systems through the use of pseudonyms to "protect their privacy".

Austrac chief executive Brendan Thomas said: "Austrac's proceedings allege that Entain did not develop and maintain a compliant anti-money laundering programme 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.” 

In a statement Entain, which operates the Ladbrokes and Neds brands in Australia, said it had co-operated fully with Austrac throughout its investigation and that a programme of enhancements to its AML and CTF systems was due to be completed in June 2025.

The company added that while the outcome of the action against its Australian arm was uncertain, "it may result in a penalty being levied, which could be potentially material".

Entain chief executive Gavin Isaacs

Gavin Isaacs, who took over as chief executive of Entain in September, added: "We note the allegations made, which we take extremely seriously. We have co-operated fully with Austrac throughout its investigation and we are implementing further enhancements to Entain Australia's AML and CTF compliance arrangements.

"While we still have some further improvements to make, we expect these to be implemented in line with the plan we communicated to Austrac in 2023.

"We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector for our customers, stakeholders and the wider community."

Last year, Entain paid a total of £615 million in penalties, charitable donations and costs following the conclusion of a long-running investigation by HMRC into bribery claims surrounding a Turkish-based business owned by Entain's predecessor, GVC Holdings.

Entain shares were down nearly five per cent at 776p on Monday morning.

Read these next:

'It is no longer viable for us to continue operating the site' - Entain announce intention to close Crayford greyhound stadium after 38 years 

Betting giant Entain raises projections for the year after stronger than expected performance 

'We have a good relationship with Arc' says Entain as Euros help boost half-year results 

Sign up to receive On The Nose, our essential daily newsletter, from the Racing Post. Your unmissable morning feed, direct to your email inbox every morning.