The Australian Transaction Reports and Analysis Centre (AUSTRAC) has put detailed allegations before the Federal Court about how Entain handled money laundering and terrorism financing risk. The material was made public on 31 March, according to trade publication iGaming Business. These are allegations in a statement of claim. They have not been proven, and Entain has not yet filed a defence.
What AUSTRAC alleges
AUSTRAC lodged the case in December, accusing the operator of "serious and systematic" non-compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws. At that time Entain acknowledged it could face a material penalty as a result of the investigation.
The court documents were filed in the Federal Court of Australia, New South Wales Registry. They run to 640 pages and, according to the report, detail each instance in which Entain allegedly failed to flag or report a money laundering or terrorism financing risk during the period covered. They focus on four accounts across Entain's brands.
"Serious and systematic" non-compliance: AUSTRAC's description of Entain's alleged AML/CTF failings, as reported by iGaming Business.
The accounts and the affiliate
The filing describes several multi-million-dollar deposits and withdrawals. One of the four flagged accounts had lifetime turnover of more than $57.3 million "within the space of a couple of years".
Another account, on Entain's Ned brand, was flagged for unusually large deposits and withdrawals. Up to $1.8 million was deposited between November 2017 and April 2019, and $1.2 million of that was withdrawn in the period. The account was also linked to multiple expired debit and credit cards. AUSTRAC says Entain was aware of this.
On another account, the holder refused to provide source of wealth information over a two-month period in 2021. In September and December 2022, a gambling integrity body flagged the betting activity of one suspicious account over a nine-month period. In May 2023, a law enforcement agency made an inquiry about one account's betting activity. The source does not say which accounts these referred to beyond that.
The filing also alleges that in 2019 Entain did not disclose the "serious criminal history" of one affiliate partner. That history included drug dealing and gun crime. The source does not name the affiliate.
One account holder was reported in the media to have been charged by police with one count each of extortion, possessing dangerous drugs and possessing a knife in a public place. The source does not name the person and does not say how those charges were resolved. Media reports of charges are not findings of guilt.
Entain's response and the timetable
In a statement on 31 March, Entain said it acknowledged the allegations and would take some time to review AUSTRAC's statement of claim. The company said it had cooperated fully with AUSTRAC throughout the investigation. It also said it began a programme of further enhancements to its AML and CTF systems and processes in December 2022. Those claims come from the company and have not been independently verified in the source material.
The parties are required to attend mediation before 4 August. If the matter is not resolved by then, Entain must file its defence by 12 September. The source does not disclose what penalty AUSTRAC is seeking or what a court might impose.
What remains unclear
The report does not say how many transactions are in dispute in total, or whether the four accounts are the only ones at issue. It does not identify the account holders. It also gives no detail on how Entain responded to each alleged flag at the time. Until the matter is mediated or heard, the claims remain AUSTRAC's account of events and Entain's response is limited to its 31 March statement.
Australians should remember that online casino services are prohibited under the Interactive Gambling Act 2001. Anyone concerned about their gambling can contact Gambling Help Online on 1800 858 858.