‘Serious concerns’ – Tabcorp at centre of AUSTRAC investigation

Tabcorp has been placed under an enforcement investigation from AUSTRAC, which said it has “serious concerns” about the publicly listed wagering company’s ability to manage risks relating to money laundering and terrorism financing.

AUSTRAC is responsible for assessing the compliance of Australia’s wagering sector with financial crime laws, and it is engaged in a legal case against Tabcorp’s key rival Entain.

In a notice to the Australian Stock Exchange, Tabcorp confirmed this week it had received correspondence.

“Tabcorp has been informed by AUSTRAC that it has a number of serious concerns with Tabcorp’s ability to effectively identify, mitigate and manage its money laundering / terrorism financing risks,” the notice read.

“As a consequence, AUSTRAC has advised that it has commenced an enforcement investigation.

“This investigation will initially focus on evaluating Tabcorp’s compliance with its obligations under the AML/CTF Act in relation to having a compliant AML/CTF Program, complying with that AML/CTF Program and appropriately monitoring customers.”

Tabcorp’s share price plummetted 25 per cent on the market opening on Thursday, while an hour after it was still down 22 [er cent to 90 cents, having been $1.16 on Wednesday.

Tabcorp chairman Brett Chenoweth said the company will work closely with AUSTRAC to address any concerns they may have.

“Tabcorp takes its anti-money laundering and counter-terrorism financing obligations very seriously. The board and executive are fully committed to collaborating with AUSTRAC in the continuing uplift in Tabcorp’s ML/TF risk maturity,” he said.

Tabcorp managing director and chief executive, Gillon McLachlan, who has led a revival in the company’s fortunes since taking over in 2024, said risk compliance was a key priority for Tabcorp.

“I am committed to leading a compliant and safe company that understands its risk obligations. Uplifting our risk capability has been an ongoing part of the company’s transformation and we will work constructively with AUSTRAC through this process,” he said.

Tabcorp said it has been advised by AUSTRAC that its investigation is at an early stage and its approach will be determined “once sufficient evidence has been collected and assessed”.

“AUSTRAC has also advised that all potential outcomes remain open, including the possibility that no further enforcement action will be taken,” it said.

AUSTRAC could proceed to enforcement action, which could lead to a lengthy and expensive legal process. Entain was advised of AUSTRAC’s enforcement action in December 2024, but the matter won’t reach court until November.

Tabcorp was previously under AUSTRAC investigation in 2017 and was forced to pay what was then a record civil penalty of $45 million for 105 breaches of AML/CTF over five years.

The announcement comes after recent reports that Tabcorp had banned several customers, citing money-laundering compliance concerns.