Entain Plc has confirmed that its Australian business has filed a defence against the penalty proceedings initiated by the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Yesterday afternoon, the FTSE100 gambling group informed investors that “Entain Australia (Entain Group Pty Ltd) has filed its defence in response to AUSTRAC’s amended statement of claim in the Federal Court of Australia.”

The dispute relates to AUSTRAC’s investigation of Entain Australia, during which the financial watchdog uncovered alleged cases of systematic non-compliance with Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act 2006.

Allegations made against the portfolio of Ladbrokes Australia, Neds, Betstar and Bookmaker.com.au detailed that Entains brands had inadequate AML programmes during the investigative period of December 2018 to December 2024.

The portfolio was accused of deficiencies in key processes for verifying customer accounts and the source of funds for high-value transactions. Entain’s brands were further accused of using third parties, affiliates and cash-deposit channels that allowed funds from potentially opaque sources to be credited into betting accounts.

Entain’s mediation and response

Entain initially responded that it had begun mediation and was co-operating with AUSTRAC, adding that it had embarked on a remediation programme to enhance its Australian AML/CTF systems. This programme, which began in December 2022, is scheduled for completion by June 2025.

As yet, AUSTRAC has not filed or disclosed any final penalty amount, though Entain has previously warned that any sanction could be “potentially material.”

However, the company has now confirmed that its Australian business is prepared to challenge several of the regulator’s claims.

In its statement, Entain acknowledged that there were certain deficiencies in its previous AML/CTF compliance programme between December 2018 and August 2024, but it disputes a number of AUSTRAC’s allegations and interpretations.

The response emphasised that over the past two years it has undertaken a substantial transformation of its compliance framework, including:

• A tenfold increase in AML/CTF staffing;

• Tens of millions of dollars invested in new systems and technology;

• Closure of higher-risk channels – including all cash payment channels, which previously accounted for less than 2% of deposits;

• Closure of all 17 customer accounts in question – prior to legal proceedings, some as far back as 2020;

• New governance, controls, processes and oversight of risks; and

• A new leadership team of Entain Australia  committed to a compliance-first culture.
  

Entain stated that it has fully co-operated with AUSTRAC and continues to engage “constructively and in good faith.”

Andrew Vouris, CEO of Entain Australia and New Zealand, commented: “We sincerely regret that our old programme didn’t meet expectations. We followed expert advice at the time but, looking back, we recognise the old programme missed the mark.

We’ve acknowledged our shortcomings, taken responsibility, and spent the last two years learning from them and fixing them. Entain has fundamentally transformed its approach to compliance and now operates a market-leading programme, underpinned by a compliance-first culture – to win, but not at all costs.”

Entain needs a clean slate

The AUSTRAC investigation was highlighted by Entain CEO Stella David and Deputy CEO/Chief Financial Officer Rob Wood in H1 update, detailing that the Australian business remained confident that mediation will prevent a major financial penalty.

Market analysts have speculated that AUSTRAC’s case could result in a multi-million-dollar fine, citing precedent from previous enforcement actions notably Crown Resorts’ AU$450m (€270m) settlement and SkyCity Entertainment Group’s AU$67m (€40m) penalty for AML failings.

The investigation has been identified as a further liability for Entain and its corporate recovery. Leadership aims to close out 2025 without any further regulatory blights following a series of compliance fines that impacted its 2023 and 2024 financial results of its UK business.

In 2023, Entain reached a record £585m settlement with HM Revenue & Customs (HMRC) to resolve a long-running investigation into alleged bribery and failure to prevent corruption within its legacy Turkish-facing operations (formerly operated by GVC Holdings). 

The settlement included a £465m financial penalty, £120m in disgorged profits, and a £20m charitable contribution. The incident concluded  the largest enforcement penalty ever imposed on a UK gambling licence.

The fallout from the HMRC case prompted significant leadership changes and internal governance reforms, as Entain sought to rebuild trust with regulators, shareholders, and the UK Gambling Commission (UKGC).

In 2024, the group was subsequently fined £3m by the UKGC for social responsibility and anti-money-laundering failures linked to its online and retail operations. While modest compared to the HMRC settlement, the UKGC’s action reinforced the regulator’s expectation that Entain must demonstrate continuous improvement in its compliance culture.

Against this backdrop, the AUSTRAC investigation represents Entain’s final major regulatory exposure, with leadership intent on drawing a line under past compliance failings and presenting 2025 as a year of stabilisation of all units.

CEO David and Deputy CEO Wood have vowed to restore Entain’s PLC standing through stronger conduct, enhanced compliance standards, and a renewed focus on long-term sustainability.