The Australian Transaction Reports and Analysis Centre (AUSTRAC) has recently initiated an enforcement investigation into the online betting giant bet365, operated by Hillside (Australia New Media) Pty Limited. This move comes as part of a broader supervisory campaign targeting the corporate bookmaker sector, with a particular focus on compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
The investigation was spurred by the findings of an external audit report ordered by AUSTRAC, which raised concerns about bet365’s adherence to the stringent regulations designed to thwart financial crimes. AUSTRAC’s Chief Executive, Brendan Thomas, emphasized the critical role that betting agencies play in combating financial crime, stating that “Corporate bookmakers must have robust systems in place to ensure they can manage and mitigate risks associated with money laundering and terrorism financing.”
The scrutiny of bet365 is indicative of AUSTRAC’s commitment to maintaining the integrity of Australia’s financial system. The regulatory body possesses a wide array of tools and enforcement powers to address any suspected non-compliance. While the details of the investigation remain confidential, the implications for bet365 could be significant, given the precedent of hefty fines levied on other entities for similar breaches.
In recent years, Australia’s gambling industry has faced increased regulatory pressure, with several high-profile cases highlighting the need for stringent compliance. For instance, Crown Resorts was subjected to a substantial financial penalty for “serious and systemic” AML and CTF failings at its Melbourne and Perth casinos. Similarly, Entain has been under AUSTRAC investigation since September 2022 for AML/CTF concerns.
The case of bet365 is particularly noteworthy as it follows a fiscal year where the company reported a loss despite an increase in sports betting and gaming revenue. The financial strain, coupled with the potential repercussions of the AUSTRAC investigation, could have far-reaching effects on bet365’s operations and the online betting landscape in Australia.
As the investigation unfolds, the industry and its stakeholders will be closely monitoring the outcome, which could set new precedents for compliance and enforcement in the sector. The ramifications of this investigation are not just limited to bet365 but could also influence the operational practices of other corporate bookmakers, reinforcing the importance of robust AML/CTF processes to safeguard against criminal exploitation.
