Australia's financial crimes watchdog, AUSTRAC, has initiated legal action against the Entain Group, citing serious failures in their anti-money laundering practices.

The investigation into Entain, which began over two years ago, has raised ongoing concerns about the company's compliance with financial regulations.

AUSTRAC alleges that Entain did not conduct adequate checks on 17 high-risk customers and used pseudonyms to obscure the identities of some of these individuals.

The regulator has specifically criticized Entain's board and senior management for lacking sufficient oversight of compliance measures.

In response to the allegations, Entain's CEO, Gavin Isaacs, emphasized the company's commitment to enhancing its compliance arrangements and stated that they have fully cooperated with AUSTRAC throughout the investigation.

AUSTRAC claims that Entain failed to maintain a compliant anti-money laundering program and did not adequately assess associated risks, leaving the company vulnerable to criminal exploitation.

These alleged failures could potentially expose Entain to various forms of criminal activity, including fraud, scams, and corruption.

Entain Group operates popular gambling websites such as Ladbrokes and Neds and is the Australian division of the London-listed Entain PLC.

This legal action against Entain follows a significant case in 2023 where Crown was fined $450 million for similar breaches of money laundering regulations.

In addition to Entain, AUSTRAC is also monitoring the Gold Corporation, which operates the Perth Mint and is under scrutiny for over 3,000 regulatory breaches.

The civil action against Entain was officially filed on December 16, 2024, and alleges systemic non-compliance with Australia's anti-money laundering and counter-terrorism financing laws.