The Australian Transaction Reports and Analysis Centre (Austrac), a financial watchdog agency, has announced that it is investigating gaming operator Entain, citing concerns about shortcomings related to anti-money laundering (AML) and counter terrorism financing (CTF). The agency also said it may do the same for other operators in the country.
Austrac said in a statement that it decided to take formal action into the operations of Entain following an extensive “supervisory campaign.” A more thorough investigation will reveal whether or not the company has actually violated the country’s AML/CTF Act.
Nicole Rose, chief executive of Austrac, told iGaming Business that “reporting entities have a responsibility to ensure they identify, assess and manage risks of money laundering and terrorism financing, develop adequate processes and devote the necessary resources to comply with their AML/CTF obligations.”
Rose also indicated that the outcome of the investigation may motivate the agency to review other operators as well, many of whom have had their fair share of financial-related mishaps in the last two-plus years.
Just weeks ago, Entain was hit with a massive $20.6 million fine from the U.K. Gambling Commission for AML violations and other failures. The fine was split between several of the operator’s subsidiaries.
The Austrac investigation comes at an interesting time, as the company also just announced that its Sports Interaction affiliate has secured the requisite licenses to operate in Ontario, Canada, a market that was just recently regulated under the Alcohol and Gaming Commission of Ontario.
Entain’s Chief Governance Officer Robert Hoskin told Yogonet that the company was “really pleased with our performance so far across our stable of brands in Ontario, and in particular to have secured a license for our Sports Interaction brand in this highly competitive market.”
He added that the expansion “aligns with our strategy to be a leader across our regulated markets.”
For the second quarter of this year, the province’s iGaming markets tallied a total handle of $3.09 billion, resulting in total gaming revenues of $123.9 million.
The investigations could also have repercussions in the U.S. where Entain is an equal partners with BetMGM No word as yet whether any U.S. regulator has raised concerns.
