Entain, a leading company in the worldwide gambling industry, has recently come under scrutiny by AUSTRAC, the Australian Transaction Reports and Analysis Centre.

According to a claim published in December 2024, Entain is accused of  “serious and systematic” failure to comply with various anti-money-laundering directives.

The investigation could result in court appearances and potential fines for Entain.

What is Entain?

The Entain Group, formerly known as GVC Holdings, is an international gambling company founded in 2004. It's listed and publicly traded on the London Stock Exchange.

To players, Entain is likely best-known as the owner and operator of several major casino and sports betting brands. These include major competitors in the industry such as Ladbrokes, Coral, bWin, Sportingbet, and a number of other operations. Needless to say, Entain is a major player in both the online and land-based gambling industries.

The company first came under scrutiny back in September 2022. Australia's financial regulator noticed several irregularities, specifically pertaining to safeguards against money laundering and terrorism funding. These claims stated that the company's leadership held little oversight over several aspects of the company's financial management, leaving it vulnerable to criminal abuse.

What is AUSTRAC?

Australian Transaction Reports and Analysis Centre is Australia's financial intelligence agency, whose focus lies in monitoring financial crimes. This includes everything from money laundering to human trafficking and severe fraud.

Importantly, AUSTRAC is not responsible for regulating or monitoring gambling in Australia. There is no single overarching statute regulating gambling activities in Australia, nor is there a single overarching gambling authority. However, companies registered in the country are required to adhere to all of its laws. In this case, this refers to financial regulations whose aim is to prevent money laundering.

The Case Against Entain

The first claims against Entain were brought forward in December 2024. According to these claims, an investigation revealed large-scale, systematic issues in terms of AML/CTF safeguard compliance.

For starters, Entain casinos allowed third parties to accept cash and other deposits on behalf of the business to be credited to betting accounts. This meant people could fund gambling using unverified income, including potentially the proceeds of crime. Entain did not have the appropriate controls to verify the identity of these customers or to check the source of the cash deposits.

AUSTRAC also identified at least 17 high-risk customers whom Entain failed to verify or check properly. This violates multiple guidelines for the gambling business, including both Anti-Money-Laundering and Safe Gambling rules.

AUSTRAC's Findings

The investigation's findings were made public in late March. The 640-page court filing details every instance Entain failed to flag or report a money laundering or terrorist financing risk during the reported period.

The filing details multiple massive financial transactions, typically to the tune of millions of dollars. Entain apparently failed to do the necessary checks that are associated with these types of large transactions. AUSTRAC later revealed that many were associated with persons with long and well-documented criminal histories, which Entain should have been aware of.

What This Means for Players

Entain has acknowledged the investigation and its potential consequences, but hasn't issued any hard statements about its future.

To be clear, this is a civic case pursued by Australia's financial regulator. In other words, Entain's licenses are not under any direct risk, which means access to Australian online casinos should continue uninhibited.

However, Entain still faces millions in damages and a serious blow to its reputation. Although the operator is not licensed by any single Australian authority, this investigation can still draw the attention of regulators like the UKGC or MGA, whose licenses are crucial for Entain's online operations.

While we don't expect players to notice anything wrong from their end, the investigation could still have consequences for Entain's many brands. We'll continue monitoring the situation in case anything changes.