AUSTRAC orders bet365 to improve anti-money laundering controls

Australia’s financial intelligence agency AUSTRAC has instructed online bookmaker bet365 to strengthen its anti-money laundering and counter-terrorism financing controls after identifying significant weaknesses in its risk management and suspicious transaction reporting systems.

Bet365, which holds between 5 to 10 per cent of the Australian market, has entered into a legally binding enforceable undertaking with AUSTRAC, committing to overhaul key parts of its anti-money laundering framework, including how it assesses money-laundering risks and identifies and reports suspicious activity.

AUSTRAC chief executive Brendan Thomas said strong risk assessments and effective reporting systems were critical to protecting Australia’s financial system, especially in a wagering context.

“Gambling businesses pose an inherent money laundering risk and we are focusing on the risks to the Australian economy from money laundering through this sector,” Thomas said.

The action follows a lengthy compliance process that began after AUSTRAC identified concerns from July 2016 to June 2020.

In November 2022, AUSTRAC formally directed the company to appoint an external auditor, and the auditor’s review was delivered in 2023. An independent review commissioned by bet365 and provided to AUSTRAC in February 2025 later reinforced those concerns.

The external audit and independent review found bet365 had failed to adopt and maintain an anti-money laundering and counter-terrorism financing program that met legislative requirements. AUSTRAC said it remained concerned the company could continue to be non-compliant without further remediation.

The regulator acknowledged bet365 had taken steps to address the issues, but it would be required to undertake more work.

Under the undertaking, bet365 must redesign and implement a strengthened risk assessment framework, improve change management processes, enhance customer risk assessment models, and bolster systems for identifying and reporting suspicious transactions.

bet365, which is British-owned, must provide AUSTRAC with a progress report by December 31, 2026, while a final auditor’s report confirming implementation of remediation measures is due by mid-2027.

AUSTRAC is pursuing Federal Court proceedings against Entain Group over alleged AML/CTF failures and has previously taken enforcement action against Sportsbet, which was released from its obligations on Friday.

It is also investigating Tabcorp.

Thomas said the case highlighted the high-risk nature of gambling businesses, which process large volumes of funds through fast-moving digital channels.

“The gambling industry processes large volumes of money at high speed, often through anonymous digital channels. This creates opportunities criminals look to exploit,” he said.

“This means businesses need to continuously improve their systems to assess risks and monitor for suspicious activity because when controls fall behind, the consequences extend beyond a single company.”