According to iGamingBusiness, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has filed a lawsuit against Entain.
The civil lawsuit is for violations of anti-money laundering and counter-terrorism financing laws. The UK-based operator faces serious allegations of failing to detect high-risk financial activity.
This marks the first time AUSTRAC has taken civil action against an online gambling operator, signaling a stricter stance on AML compliance in the sector.
Allegations involve multi-million-dollar risk failures
AUSTRAC claims Entain failed to properly evaluate the risks tied to its services and didn’t implement an effective AML compliance program. The regulator also said Entain’s senior management neglected its responsibilities. Court documents, made public on March 31, reveal that Entain failed to identify and report several red flags, including large, unusual transactions.
One account, flagged by AUSTRAC, saw deposits and withdrawals totaling millions of dollars. Between 2017 and 2019, the account received nearly $1.8 million in deposits, with $1.2 million cashed out during the same period. Also, that same account was linked to expired debit and credit cards, which Entain reportedly failed to act upon.
Legal proceedings and future actions
Entain has accepted the investigation and stated that it has been cooperating with AUSTRAC. In response, the operator started improving its AML and CTF compliance systems. However, the investigation remains unresolved, with AUSTRAC and Entain set to attend a mediation by 4th August. If there is no resolution by then, Entain must file a formal defense by 12th September 2025.
