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Entain plc, the global sports betting and gaming group, acknowledges that the Australian Transaction Reports and Analysis Center has commenced civil penalty proceedings in the Federal Court of Australia against Entain Group Pty Ltd, the Group’s subsidiary in Australia.
Entain is carefully considering the Originating Application and Concise Statement filed and served by AUSTRAC.
The proceedings against Entain Australia relate to alleged contraventions of the Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the "Act"), identified as part of AUSTRAC’s enforcement investigation of Entain Australia. The Act requires those it regulates to identify, mitigate and manage risks of money laundering and terrorist financing. As the Group has previously disclosed, this investigation was announced by AUSTRAC in September 2022.
Entain has co-operated fully with AUSTRAC throughout its investigation, and in December 2022 commenced a program of further enhancements to Entain Australia's anti-money laundering and counter-terrorist financing systems and processes. This dedicated program, as communicated to AUSTRAC, is due to be completed in June 2025.
We note the previous penalties in AUSTRAC proceedings in the gaming sector and, whilst the outcome of the civil penalty proceeding against Entain Australia is uncertain, it may result in a penalty being levied which could be potentially material. The level of any penalty is ultimately a matter for the Federal Court of Australia, which proceedings may take some time.
Gavin Isaacs, CEO of Entain, commented:
“We note the allegations made, which we take extremely seriously.
We have co-operated fully with AUSTRAC throughout its investigation and we are implementing further enhancements to Entain Australia's AML and CTF compliance arrangements.
Whilst we still have some further improvements to make, we expect these to be implemented in line with the plan we communicated to AUSTRAC in 2023.
We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector for our customers, stakeholders and the wider community.”
Entain will make such further announcements in relation to this matter as required.
