Bet365 investigated in anti-money laundering probe

The financial watchdog has launched an investigation into corporate bookmaker bet365 to assess whether it’s been compliant with anti-money laundering and counter-terrorism financing laws.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) confirmed the investigation on Thursday morning as part of a supervisory campaign of the broader corporate bookmaking sector.

Bet365 will be investigated by AUSTRAC over anti-money laundering and counter-terrorism law compliance.Credit: Getty Images

Any contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 will result in the English gaming giant facing millions of dollars in penalties and other regulatory crackdowns. Bet365 is the second international wagering giant with a presence in Australia to face an AUSTRAC probe. Entain, the owner of Ladbrokes and Neds in Australia, is awaiting the outcome of a similar investigation into its operations launched last year.

The maximum fine for breaching the Act is $22 million.

AUSTRAC chief Brendan Thomas said wagering groups must have robust systems in place to manage the risk of money laundering and terrorism financing.

“Businesses without adequate processes in place to manage those risks leave themselves vulnerable to exploitation by criminals,” he said in a statement.

The regulator issued rival gambling giant Tabcorp a $45 million penalty in 2017 after a similar investigation, which exposed 108 contraventions of the anti-money laundering and counter-terrorism financing laws over a five-year period.

It was the highest ever civil penalty in corporate Australian history at the time.

Bet365 and Sportsbet, the biggest bookmaker in Australia, were told to appoint external auditors to assess their compliance with the anti-money laundering and counter-terrorism financing laws as part of a separate direction from AUSTRAC in 2022.

The 180-day audit was charged with examining the compliance programs of each wagering business. The regulator said at the time it was putting the whole wagering industry “on notice”.

Entain’s AUSTRAC investigation followed a $29 million penalty it paid to the UK regulator, the UK Gambling Commission.

Bet365 declined to comment because the investigation is ongoing.

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