Online bookmaker Bet365 forced to overhaul anti-money laundering controls
One of Australia’s biggest online gambling operators has been hit with an undertaking over ‘serious gaps’ in anti-money-laundering controls.
One of Australia’s biggest online bookmakers has been forced to overhaul its anti-money-laundering controls after the financial crime watchdog found “serious gaps” in Bet365’s risk systems and suspicious matter reporting.
The Australian Transaction Reports and Analysis Centre said Hillside (Australia New Media), which trades as Bet365, had entered an enforceable undertaking requiring it to strengthen its anti-money-laundering controls.
AUSTRAC chief executive Brendan Thomas said gambling businesses faced inherent money-laundering risks because they moved large volumes of money quickly.
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By continuing you agree to our Terms and Privacy Policy.“The gambling industry processes large volumes of money at high speed, often through anonymous digital channels,” Mr Thomas said.
“This creates opportunities criminals look to exploit.”
Mr Thomas said bookmakers had to keep improving their systems as risks changed.
“When controls fall behind, the consequences extend beyond a single company,” he said.
The undertaking requires Bet365 to improve its risk assessment process and strengthen how it detects and reports suspicious transactions.
Breaches could attract civil penalties, making the obligations directly enforceable under anti-money-laundering laws.
The action comes amid a wider AUSTRAC crackdown on the gambling sector.
Crown Melbourne and Crown Perth were ordered by the Federal Court in 2023 to pay a $450 million penalty for breaches of anti-money-laundering laws.
The Federal Court last year ordered SkyCity Adelaide to pay a $67m penalty and $3m in costs over breaches at the casino.
AUSTRAC is also pursuing Federal Court action against Entain Group, owner of Ladbrokes and Neds, over alleged serious and systemic non-compliance with anti-money-laundering laws.
The Bet365 action comes days after AUSTRAC finalised a separate enforceable undertaking with Sportsbet, saying the company had completed required remediation.
Mr Thomas said Sportsbet had been required to make significant improvements to its systems, controls and governance.
“When AUSTRAC identifies systemic weaknesses in a reporting entity’s anti-money-laundering and counter-terrorism-financing controls, we will take enforcement action,” he said.
