AUSTRAC accuses Entain of "serious” AML failures in recently disclosed court documents

Australia’s financial crimes regulator has accused global betting group Entain of failing to report criminal activity linked to several player accounts across its brands, alleging “serious and systematic non-compliance” with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.

The case against Entain was first submitted by the Australian Transaction Reports and Analysis Centre (AUSTRAC) in December. At the time, Entain acknowledged it could face a material penalty as a result of the investigation. 

In a 640-page statement of claim filed with the Federal Court of Australia and made public on March 31, the AUSTRAC outlined multiple alleged breaches involving four player accounts between 2019 and 2022. 

The court documents detail cases of suspicious behavior, including one account with lifetime turnover of AU$57.3 million ($35.08 million) over a span of just a few years, and another on Entain’s Ned brand that saw AU$1.8 million in deposits and AU$1.2 million in withdrawals between November 2017 and April 2019.

Other flagged activity included an account that remained active despite being linked to expired debit and credit cards, and a customer who refused to provide source-of-wealth documentation over a two-month period in 2021. The same account drew the attention of a gambling integrity body in 2022 and law enforcement in 2023.

In one instance, Entain allegedly failed to report a customer with a “serious criminal history,” including prior convictions for drug dealing and gun-related offences. Another individual connected to the platform was later charged with extortion and drug offences.

Entain exhibited ‘serious and systematic non-compliance’ with AML/CTF obligations, AUSTRAC wrote in the filing.

In a statement on March 31, Entain acknowledged the allegations, stating it would take time to review AUSTRAC’s statement of claim. The company has cooperated fully with AUSTRAC throughout the investigation, it said, noting that it began upgrading its AML and counter-terrorism financing systems in December 2022.

As part of the legal proceedings, both parties must enter mediation before August 4. If the case is not resolved, Entain will be required to file its defence by September 12.