Entain Faces Legal Action for AML Violations

Entain, the owner of Ladbrokes, is facing legal action from Australia's financial intelligence agency, AUSTRAC, for alleged violations of anti-money laundering (AML) and counter-terrorism financing laws. The agency claims that Entain exhibited 'serious and systemic non-compliance', including inadequate checks on 17 high-risk customers and failing to properly verify the sources of their funds. This marks the first civil proceedings initiated by AUSTRAC against an online gambling operator, following a two-year investigation that began in September 2022. Entain's CEO acknowledged the potential for substantial fines, estimating up to AU$22.2 million per infraction, and emphasized the company's commitment to improving its AML systems by June 2025. The legal action comes amid a broader scrutiny of the gambling sector in Australia, with significant penalties previously imposed on other companies. Entain's shares fell 7% following the announcement of the proceedings.