Entain files Defence to AUSTRAC proceedings

[Chief Stipe]

Entain files Defence to AUSTRAC proceedings

Entain Australia (Entain Group Pty Ltd) today filed its Defence in response to AUSTRAC’s amended statement of claim in the Federal Court of Australia.https://bitofayarn.com

Entain acknowledges there were certain deficiencies in its previous anti-money laundering and counter-terrorism financing (AML/CTF) compliance program (Program) during the period December 2018 and August 2024. https://bitofayarn.com

At the same time, Entain disputes a number of the allegations and interpretations made by AUSTRAC. 

Entain also notes that over the last two years, it has undertaken a substantial transformation of its approach to compliance and strengthened its Program with:
•    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 committed to a compliance-first culture.https://bitofayarn.com

Entain has fully cooperated with AUSTRAC and continues to engage constructively and in good faith.

Andrew Vouris, CEO of Entain Australia & New Zealand, said: https://bitofayarn.com

“We sincerely regret that our old program didn’t meet expectations. We followed expert advice at the time but, looking back, we recognise the old program 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 program, underpinned by a compliance-first culture – to Win, But not at all costs.”

Media Contacts: 

Australia – Trenton Akers

Trenton.Akers@entaingroup.com.au  
+61 422 828 895

New Zealand – Matt Smith 

matt.smith@entaingroup.co.nz  
+64 27 228 5423

Entain plc (and Sodali & Co)  

media@entaingroup.com
entain@sodali.com   
+44 (0) 20 7250 1446

27 October 2025

[sarge]

Mea culpa.

17 specific accounts is damning.

They’re foreigners and have form in multiple other jurisdictions.

Their $100m provision reported in August this year looks unders…..

[Chief Stipe]

9 minutes ago, sarge said:

17 specific accounts is damning.

They were all closed before legal proceedings commemced.

10 minutes ago, sarge said:

Their $100m provision reported in August this year looks unders…..

If that happens then AUSTRAC will be ignoring their own penalty precedents.

[curious]

20 minutes ago, Chief Stipe said:

If that happens then AUSTRAC will be ignoring their own penalty precedents.

It's no longer up to AUSTRAC is it? It's up to the court to decide that now since the mediation has failed.

[Chief Stipe]

6 minutes ago, curious said:

It's no longer up to AUSTRAC is it? It's up to the court to decide that now since the mediation has failed.

Either way I doubt the quantum of the penalties will be out of line with the precedents.

[Chief Stipe]

Consultants told us AML program was ‘largely’ compliant: Entain

Zoe SamiosBusiness reporter

Oct 29, 2025 – 3.47pm

 

The British owner of Ladbrokes and Neds has dragged two specialist consulting firms into its fight against the financial crimes watchdog, arguing multiple reviews showed its anti-money-laundering and counter-terrorism program was largely compliant.https://bitofayarn.com

London-listed Entain is in mediation with the Australian Transaction Reports and Analysis Centre after its board and executive team were accused of failing to put in proper checks on how some of its biggest customers were financing multimillion-dollar bets.

 

Ladbrokes, a major sponsor of key race meets, faces millions of dollars in penalties for alleged breaches of anti-money-laundering and counter-terrorism laws. Getty

The investigation found Entain allowed 17 high-risk customers to spend more than $152 million without doing appropriate due diligence. The bookmaker has contested a number of allegations in a defence filed on Monday, including the damage caused by its non-compliance. https://bitofayarn.com

One of the areas of dispute is harm caused by cash that was entered into betting accounts through cash payment channels, including terminals at retail venues.

“Entain accepts that certain inward payment channels obscured the source of funds, including by permitting deposits of cash, which inhibited the ability of law enforcement and AUSTRAC to trace money to its source,” the concise statement in response said.

 

“However, the level of harm suffered should not be equated to the total amount of deposits or withdrawals by the 17 customers ... harm requires looking at the counterfactual if alternative systems and controls were in place.”

Entain is one of the country’s largest online bookmakers and had almost 2 million customers last year with a market share of 17 per cent. AUSTRAC’s central allegation is Entain did not have the right systems in place – such as transaction limits and procedures for international deposits or withdrawals – to manage the risk of money laundering. https://bitofayarn.com

The wagering giant said it commissioned four independent reviews of part of its compliance program by two specialist firms – GRC Solutions and Murray Waldren Consulting. The part the consultants assessed – Part A – had the primary purpose of identifying, mitigating, and managing money-laundering or terrorism-financing risks.

A defence to non-compliance is whether a company took precautions and exercised due diligence to avoid the breaches. The independent reviews conducted by GRC Solutions in 2018 and Murray Waldren Consulting between 2020 and 2022 found Part A of the program was “largely compliant” with the law. https://bitofayarn.com

“They made recommendations for improvement, none of which was categorised as ‘significant’,” the concise statement said. “Entain promptly took steps to implement recommendations made in the Independent Reviews and sought assurance from MWC that it had done so appropriately.”

Entain also said that once it was informed by AUSTRAC of serious non-compliance in September 2022, it overhauled its compliance program. That program was fully implemented in June alongside a multimillion-dollar increase in AML/CTF staffing and investments in systems and technology. It claims it has almost minimised risk by limiting business to Australia and removing certain payment channels.

 

Andrew Vouris, Entain Australia and New Zealand’s chief executive, apologised that the old program did not meet expectations.

“We followed expert advice at the time but, looking back, we recognise the old program missed the mark,” he said. “We’ve acknowledged our shortcomings, taken responsibility, and spent the last two years learning from them and fixing them.”

The bookmaker has set aside more than $100 million for the proceedings.

[curious]

15 hours ago, sarge said:

Their $100m provision reported in August this year looks unders…..

I think you'll find @sarge that the $100m is for the cost of the proceedings, not any subsequent fine and that has already been expensed.

Edited 3 hours ago by curious