Several of Australia’s leading bookmakers—including bet365, Ladbrokes and Sportsbet—are reportedly gearing up for potential regulatory penalties for suspected anti-money laundering violations from the country’s financial crimes agency Austrac, as a months-long investigation nears its end.
A spokesperson for the agency confirmed to the Guardian that the investigation into the three sportsbooks was officially launched near the end of 2022, after extensive supervision as well as independent audits that indicated potential non-compliance.
The agency is reportedly considering its next steps, and what regulatory action, if any, should be taken.
The potential ruling could have a huge impact on the industry at large, especially in a tumultuous time in which commercial operators Crown Resorts and Star Entertainment have been decimated by fines and other sanctions related to similar failures.
Austrac itself has also pursued penalties from both operators as well, and even established a dedicated gambling unit last year in response to the increasing tumult. It has spotlighted the gaming industry as being especially susceptible to such crimes.
Financial crimes expert Dr. Jamie Ferrill told the Guardian that bookmakers should brace for impact with regards to potential regulatory action, which she said might “shine a spotlight on some of the weaknesses or loopholes in their AML/CTF programs and perhaps other areas of their operations.”
“It will likely result in initial increased costs to improve their programs and clamp down on illicit activity – but that needs to be the cost of doing business,” she added.
Former Austrac CEO Nicole Rose told the Guardian that financial non-compliance must be stopped and reprimanded, as the proceeds from money laundering and terrorism funding affects entire communities, not just bettors.
“Money laundering feeds organized crime and all the harm that comes with it,” she asserted. “We need businesses at the frontline to fully comply with [the Anti-Money Laundering and Counter-Terrorism Financing] Act – to understand and mitigate their risks and report suspected crimes.”
