Probe into Entain, the betting giant that owns bookie firm Ladbrokes and other companies

The planned overhaul of Victoria’s wagering sector is under a cloud after federal agents opened an investigation into a betting giant.

A government proposal to shake-up Victoria’s wagering sector has come under a cloud after federal agents opened an investigation into a company expected to be a major player in the bid.

Entain, the betting giant that owns bookie firm Ladbrokes and other companies, is being probed by the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Revealed this week, the investigation comes less than a month after Expressions of Interest were due for Victoria’s betting licences, with Entain is expected to feature heavily in discussions.

Tabcorp has a monopoly on the current licence scheme, which includes running betting shops and punting at courses, until 2024.

Federal agents are investigating a company expected to be a major player in the bid. Picture: Getty

This single-licence model was expected to continue until the Andrews Government shelved its bidding negotiations and began a new process which floated the idea of having more licences.

If successful, this could mean multiple companies were able to open retail stores and would also allow them to take fixed odd and Totalisator bets.

Tabcorp, Sportsbet and Entain are among those expected to be major players in the bid.

The AUSTRAC investigation comes just as this process has kicked off and while Entain is a finalist for securing a similar licence in Western Australia.

Tabcorp has a monopoly on the current licence scheme.

Betting giant Entain owns Ladbrokes.

The probe will look at whether it has failed its responsibilities to tackle organise crime under anti-money laundering and counter terrorism laws.

Bookmakers are required by law to identify and manage any risks that their systems could be used or are being used for these illegal activities.

In a statement provided to The Australian, Entain confirmed it had been told about the investigation after a “standard assessment” of its current policies.

“Entain Australia notes Austrac’s decision and is cooperating with the investigation which relates to the historical period from July 2016 to June 2020,” the statement said.

When asked about the impact of the probe on its tender process, a state government spokeswoman said: “All applicants as part of the wagering and betting licensing process will be subject to rigorous probity and suitability assessments.”

Earlier this year, the United Kingdom’s Gambling Commission asked Entain to pay $28 million, its largest to date, after finding serious failures with its anti-money laundering and safer gambling efforts.

Tabcorp has also come under the attention of AUSTRAC in the past and in 2017 the Federal Court of Australia ordered the company pay $45 million in penalties.