Bet365, Sportsbet Under Microscope in Australia Over Money Laundering

Posted on: November 3, 2022, 08:38h. 

Last updated on: November 3, 2022, 11:54h.

Erik Gibbs Read More

Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

Two high-profile online gambling companies suspected of violating anti-money laundering and counter-terrorism financing (AML/CTF) laws are under fire in Australia. Bet365 and Sportsbet are the latest to find themselves in regulators’ crosshairs, as the land down under’s gaming industry gets flipped upside down.

Australia’s financial intelligence agency, the Australian Transaction Reporting and Analysis Center (AUSTRAC), is busy investigating the country’s gambling industry. It is looking at several high-profile companies and has appointed external auditors to look at the two sportsbooks.

The operators must turn over significant amounts of data to the auditors, who have 180 days to present their findings. AUSTRAC told both companies in a notice that it had “reasonable grounds” to suspect they may have broken, or are breaking, AML/CTF laws.

Not the First or the Last

AUSTRAC routinely assesses all companies in Australia to make sure they follow the rules. In recent evaluations of Bet365 and Sportsbet, it identified some concerns that need clarification.

The financial watchdog said in its notice that it doesn’t believe the two operators have implemented or are maintaining “risk-based” AML programs. It also wants to determine how much the companies’ boards and senior executives are involved in AML oversight, as required by regulations.

There is also a concern that the two operators aren’t sufficiently scrutinizing their activity at a user level. As a result, they can’t identify if a customer is inappropriately using a platform to conduct illicit financial transactions.

AUSTRAC will not hesitate to take action where suspected non-compliance is identified, to protect businesses from being exploited, and protect the Australian community from harm,” said AUSTRAC CEO Nicole Rose.

Bet365 and Sportsbet both have a solid presence in the country. Sportsbet is the largest sports betting outfit in the country, controlling about 50% of the market.

The investigations arrive after AUSTRAC revealed that it was investigating Entain two months ago. That investigation, like the others, will also explore whether the Ladbrokes owner may have violated AML/CTF laws.

Entain is complying with its obligations under laws that the government created to stop the financing of organized and serious crime. In addition to Ladbrokes, Entain owns Australian betting site Neds and European sportsbook Bwin. It also has a joint partnership with the sports betting and casino operator BetMGM with MGM Resorts.

Calm Before the Storm

Australia’s gambling industry is going through a period of forced transition, partly instigated by the actions of casino operators Crown Resorts and Star Entertainment. Their blatant disregard for AML rules in the country has taken a toll on the industry’s reputation.

Prior to those scandals, there were already updated regulations coming as a result of a global desire to focus almost singularly on problem gambling. The ongoing legal and regulatory issues are increasing attention on the industry.

As a result, and in spite of the high-profile nature of the recent debacles, the current environment is relatively calm compared to what might be coming. Australia’s governments, and others like them, receive billions of dollars by way of tax revenue and economic support from their gaming segments. However, much stricter oversight is coming.