Entain’s Australian operations are at the centre of a major legal battle involving anti-money laundering breaches and a separate civil claim over funds.
Australia’s financial intelligence agency AUSTRAC commenced civil penalty proceedings in the Federal Court against Entain Group Pty Ltd, which operates well-known betting brands including Ladbrokes and Neds.
AUSTRAC launched its legal proceedings in December 2024, alleging systemic breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 across a five-year period.
The investigation covers Entain’s commercial activities between December 2019 and December 2024, focusing on alleged failures to maintain adequate AML and counter-terrorism financing controls.
AUSTRAC’s case claims Entain brands operated with deficient customer verification processes and inadequate source-of-funds checks across their Australian wagering network.
The regulator further alleges that cash-deposit and third-party channels were permitted in ways that exposed the betting network to a serious risk of criminal exploitation.
Among the more serious allegations is a claim that Entain deliberately obscured the identities of high-risk customers by allowing the use of pseudonyms, purportedly to protect their privacy.
Entain Plc confirmed that its Australian business filed a defence, informing investors that “Entain Australia (Entain Group Pty Ltd) has filed its defence in response to AUSTRAC’s amended statement of claim in the Federal Court of Australia.”
The FTSE100 gambling group acknowledged certain deficiencies in its previous AML compliance programme between December 2018 and August 2024, while disputing a number of AUSTRAC’s allegations and interpretations.
The Federal Court granted AUSTRAC until 10 April 2026 to submit its evidence, with Entain’s response due by 6 August 2026, leaving mediation as a possible avenue before trial.
If the matter proceeds without resolution, the 2026 hearing would represent the first full Federal Court test of the AML/CTF Act against an online betting operator, with Entain potentially facing fines in the hundreds of millions of dollars.
Separately, Entain’s Australian brands Ladbrokes AU and Neds AU came under fire after an Australian Communications and Media Authority investigation uncovered more than 500 breaches of national self-exclusion rules.
The ACMA found that Entain brands opened accounts for customers registered on Australia’s national self-exclusion register BetStop and failed to close accounts for self-excluded individuals.
The ACMA secured an 18-month, court-enforceable undertaking from Entain, requiring the company to commission an independent review of its compliance systems and implement any recommended improvements.
