CANBERRA: Australia’s financial intelligence agency has formally concluded its enforcement action against online betting company Sportsbet after determining that the operator had addressed serious deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) controls.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced on Friday that it had finalised the enforceable undertaking imposed on Sportsbet, saying the company had completed all required remediation measures to strengthen its compliance systems, governance and risk controls.
AUSTRAC said an independent external audit confirmed that Sportsbet had successfully implemented reforms required under the undertaking, allowing the regulator to close the enforcement process.
Why was Sportsbet investigated?
AUSTRAC accepted an enforceable undertaking from Sportsbet in May 2024 after identifying weaknesses in the company’s compliance with Australia’s anti-money laundering and counter-terrorism financing laws.
The regulator had raised concerns over Sportsbet’s risk assessment procedures, customer monitoring practices and suspicious transaction reporting during a broader review of Australia’s corporate bookmaker sector.
Under the legally binding agreement, Sportsbet was required to improve five key areas of its AML/CTF framework, strengthen internal governance and submit to independent monitoring until the regulator was satisfied that all deficiencies had been addressed.
What did the regulator say?
AUSTRAC Chief Executive Brendan Thomas said the outcome demonstrated that regulated entities must take prompt and sustained action to meet their legal obligations.
He said Sportsbet had undertaken significant remediation to improve its systems, controls and governance, but stressed that completion of the undertaking did not reduce the regulator’s expectations for ongoing compliance.
Thomas also warned that online gambling businesses operate in a high-risk environment for money laundering, identity fraud and payment fraud, and must maintain robust risk-based controls to prevent criminal exploitation.
What does the decision mean for the gambling sector?
The closure of the Sportsbet case marks the end of one of AUSTRAC’s major compliance actions against Australia’s online betting industry, but the regulator indicated that scrutiny of the sector will continue.
AUSTRAC said it remains focused on ensuring gambling operators comply with anti-money laundering laws as part of broader efforts to combat financial crime across Australia’s regulated industries.