Australia’s financial intelligence regulator AUSTRAC has entered into a binding agreement with bet365, forcing the operator to significantly strengthen its internal anti-money laundering controls.
The enforceable undertaking follows an independent audit of bet365’s Australian operations, which concluded that substantial remedial action was necessary to achieve adequate regulatory compliance.
AUSTRAC said it discovered “serious gaps” in how the Stoke-based business manages risk and reports suspicious activity across its Australian customer base.
The system overhaul requires bet365 to implement an ongoing risk assessment approach “underpinned by clear methodology and processes”, alongside stronger suspicious transaction monitoring as risks continue to evolve.
AUSTRAC Chief Executive Officer Brendan Thomas stated: “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 further warned that “the gambling industry processes large volumes of money at high speed, often through anonymous digital channels”, creating opportunities that criminals actively look to exploit.
He added that “when controls fall behind, the consequences extend beyond a single company”, emphasising that the pressure to continuously improve AML systems applies industry-wide.
AUSTRAC’s findings identified a failure by bet365 to maintain an adequate AML/CTF programme, constituting a breach of section 81 of the AML/CTF Act, with the regulator also uncovering a lack of ongoing customer due diligence for certain customers.
Bet365 formally acknowledged these concerns and voluntarily agreed to undertake remedial actions under section 197 of the Act, including a revised risk assessment covering money laundering, terrorism financing, and proliferation financing.
The operator must also upgrade its customer risk assessment models and implement enhanced control documentation and testing measures to satisfy AUSTRAC’s minimum standards.
A midway progress report must be submitted to AUSTRAC by 31 December 2026, with a final auditor report confirming full implementation of all remedial actions due by 30 July 2027.
AUSTRAC clarified that the standards imposed on bet365 are not unique to the operator but reflect expectations held for all reporting businesses operating in higher-risk sectors.
Flutter-owned Sportsbet was also subjected to AUSTRAC-mandated AML changes back in May 2024, after a regulator review left AUSTRAC unsatisfied with the company’s risk assessment and customer monitoring frameworks.
Thomas confirmed that Sportsbet has since met those requirements, stating: “Sportsbet was required to undertake significant remediation to uplift its systems, controls and governance. AUSTRAC is now satisfied those requirements have been met.”
AUSTRAC has been stepping up its nationwide assessment of gambling operators following the AML/CTF Amendment Bill, signed into law on 29 November 2024, with the regulator also filing a lawsuit against Entain Australia in December 2024, alleging systemic breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
Entain has set aside A$100m to cover any potential AUSTRAC penalty, as the case is scheduled to be heard in the Federal Court of Australia on 30 November 2026.
