ENTAINS response to AUSTRAC 31 March 2025 regarding AML issues.

[Kit Walker]

Entain share dipped to $5.01 overnight a. 8.44% drop and over the past five days are down 17.1%. Last month 31.15% - 7.26 - 501.

At 501 that is a great price to buy. They may have done a few things wrong of late but that share price has to rise over the next few weeks.

At the current price It wouldn't come as any surprise to see a takeover proposal getting announced. MGM Resorts might be one Company considering it having previously made an offer. 

[Chief Stipe]

9 minutes ago, Kit Walker said:

MGM Resorts might be one Company considering it having previously made an offer. 

Yeah well MGM Resorts share prices is down 34% in the last 6 months.  The share price will be under more pressure if the USA tips into a recession.

[westbrew]

Kit i am 100% with the submission you have put up, however the racing industry has very close ties to the Government, and they are still glowing with the 200m that Entain threw at them and add in the other 100m they are promised over this geo block shit and the punter has no show here in NZ. Like it or not NZTR and the big breeders  don't give a toss about punters, and they are driving this legislation on behalf of Entain.  

[Chief Stipe]

24 minutes ago, westbrew said:

the other 100m they are promised over this geo block shit

Well AUSTRAC in their statement of claim make a case for ENTAIN not having done enough Geo-blocking.

[Murray Fish]

47 minutes ago, westbrew said:

Like it or not NZTR and the big breeders  don't give a toss about punters, and they are driving this legislation on behalf of Entain

@TAB For Ever what do your mate$ think about that sort of thing....

[Chief Stipe]

It's interesting how some in this industry are quick to promote a doom and gloom headline or rather a perception of one.

The perception is that ENTAIN are going to take a HUGE financial hit from the AUSTRAC Anti-Money Laundering charges.  Aka @JJ Flash

However if you read the 600+ pages of the AUSTRAC Statement of Claim against ENTAIN and then compare to other successful prosecutions there is a strong case to argue that ENTAIN will get either:

1.  A statutory enforced requirement to work with AUSTRAC to achieve compliance (ENTAIN had already agreed to pursue that course); and/or 

2.  A fine.  The quantum of that fine will be comparable to other fines that AUSTRAC have successfully prosecuted in similar cases.

There is a precedent for option 1 and that is the Sportsbet prosecution. 

In terms of option 2 a fine.  The degree of non-compliance is not close to the level of WESTPAC's which incurred a $1.3billion fine.  So it can be expected to be less.

Skycity Adelaide incurred a fine of $67 million.  Star Casino received a fine of $450 million.  Arguably the ENTAIN case lies closer to SkyCity than Star.

Star was allegedly turning over $70m a week with high risk customers which is $11.9 billion a year.  There were identified 117 high risk customers with one being given $167m gambling credit!!!  

By comparison AUSTRAC has identified 17 high risk customers who spent $152 million with ENTAIN.

In another case Crown Casinos was fined $450 million - just one of their high risk customers had a turnover more than the entire NZTAB!!

Other mitigating factors in ENTAIN's favour is that some of the non-compliance was "purchased" in that it relates to activity done by companies purchased by ENTAIN before they took over.  ENTAIN have also been cooperating fully.

ENTAIN has a market capitalisation of $8 billion and since the AUSTRAC case was lodged has seen no change in share price i.e. the market does not perceive a high risk from the current litigation.