Bet365 Faces Investigation by Austrac for Potential AML Failures

The Australian Transaction Reports and Analysis Centre (Austrac) has taken steps to investigate Bet365 for potential violations of anti-money laundering and counter-terrorism financing laws. Austrac has decided to conduct a thorough examination into Bet365's operations after initially ordering an audit in 2022 to evaluate the company's compliance with the AML/CTF Act 2006.

Austrac, being the government-run financial intelligence agency, possesses regulatory powers and the authority to impose fines if non-compliance is uncovered. Brendan Thomas, Austrac's chief executive, emphasized the importance for corporate bookmakers to implement robust systems to manage and mitigate risks associated with money laundering and terrorism financing. Failure to do so, as highlighted by Thomas, can leave businesses vulnerable to exploitation by criminal elements.

Bet365's investigation by Austrac follows similar actions taken against other betting companies in Australia. Crown Resorts, for instance, faced a hefty financial penalty of AU$450 million for serious and systemic AML and CTF failings. Entain has also been under investigation by Austrac since September 2022 for AML/CTF concerns.

Despite an 18.9% increase in sports betting and gaming revenue during the 2022-23 financial year, Bet365 reported a loss of £61.2 million. However, the company remains optimistic about future prospects, particularly in North America, where it has been expanding its presence. Analysts believe Bet365's increased investment in the US market could yield significant returns in the long run.

While facing regulatory scrutiny, Bet365 continues to strategize its expansion efforts, particularly in key markets like North America. The outcome of Austrac's investigation will be closely monitored by industry observers, as it could have significant implications for the company's operations and compliance practices moving forward.