It is accused of ‘gross and systematic’ failures to prevent money laundering

Australian authorities have brought charges against Entain over claims the Ladbrokes owner breached money laundering laws.

The Australian Transaction Reports and Analysis Center (AUSTRAC) has accused the FTSE 100 company of ‘significant non-compliance’ with the country’s anti-money laundering and counter-terrorism laws.

This is the first time an Australian financial intelligence agency has taken public action against an online gambling business.

AUSTRAC began investigating Entainwhich also owns Coral and Bwin, in September 2022 after an investigation covering the corporate bookmaking industry.

In its claims, AUSTRAC says Entain has no ‘reasonable authority’ to confirm the identity of customers and the source of their money.

It also accuses the firm of improperly vetting 17 ‘higher risk’ customers and concealing the identities of some to ‘protect their privacy’.

Brendan Thomas, CEO of AUSTRAC, said Entain ‘failed to develop and maintain an anti-money laundering program and failed to identify and assess the risks it faced’.

He added: ‘We suspect this has left the company at great risk of misconduct.’

Entain told investors it is continuing to work with AUSTRAC and hopes to complete a project to improve its anti-terrorism financing systems and procedures by June 2025.

However, they warned that although the outcome of the investigation is not certain, there may be penalties.

Recent fines issued under AUSTRAC’s financial review of gambling businesses have included fines worth AUS$450million at the Crown casino and hotel complex.

Britain’s Gambling Commission fined a record £17 million in August 2022 for ‘totally unacceptable’ social responsibility and money laundering failures.

The betting watchdog found that some customers were allowed to bet hundreds of thousands of pounds without sufficient checks, including a man living in social housing who bet £186,000 in six months.

More than a year later, Entain agreed to pay a £615million settlement to avoid going to trial for allegedly bribing a former Turkey-facing subsidiary.

Gavin Isaacs, CEO of Entain, said: ‘We see the allegations made and we take them very seriously.

‘We have cooperated with AUSTRAC throughout its investigation and are implementing further improvements to comply with Australia’s AML (anti-money laundering) and CTF (counter-terrorist financing) legal requirements.

‘While we have further improvements, we hope to implement these in line with the plan we have discussed with AUSTRAC in 2023.

‘We are committed to preventing financial crime from gambling and continue to support an organized and responsible sector for our customers, stakeholders and the wider community.’

Enter the shares it was 5.2 per cent lower at 773p on Monday morning, making the FTSE 100 the biggest loser.