Flutter Entertainment-owned Sportsbet has completed an anti-money laundering remediation programme required by Australia’s financial intelligence agency, with the regulator confirming the bookmaker has addressed deficiencies identified during a review of the corporate betting sector.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced on Friday that it had finalised its enforceable undertaking with Flutter’s Australian subsidiary, following a determination that Sportsbet had met all remediation requirements imposed in 2024.
The undertaking followed concerns over Sportsbet’s compliance with anti-money laundering and counter-terrorism financing (AML/CTF) obligations, including its approach to risk assessment, customer monitoring and suspicious matter reporting.
“When AUSTRAC identifies systemic weaknesses in a reporting entity’s AML/CTF controls, we will take enforcement action to ensure those issues are addressed,” Brendan Thomas, AUSTRAC CEO, said.
The undertaking was accepted in May 2024, following AUSTRAC’s concerns about Sportsbet’s AML/CTF framework as part of a broader review of Australia’s corporate bookmaker sector.
According to the regulator, Sportsbet was required to strengthen five key areas of its AML/CTF policies and processes. An independent external auditor subsequently assessed the company’s remediation programme and confirmed that all required measures had been implemented and operationalised.
“Sportsbet was required to undertake significant remediation to uplift its systems, controls and governance. AUSTRAC is now satisfied that those requirements have been met,” Thomas said.
Reuters reported that Flutter Entertainment-owned Sportsbet, Australia’s largest online betting operator, declined to comment following AUSTRAC’s announcement.
Gambling operators remain under watch
Although the undertaking has been completed, AUSTRAC stressed that Sportsbet and other gambling operators remain subject to ongoing regulatory scrutiny.
“Completion of an enforceable undertaking does not lessen our expectations. Businesses like Sportsbet operating in higher-risk sectors must maintain robust, risk-based systems to prevent criminal exploitation,” Thomas said.
AUSTRAC said it would continue to closely monitor businesses across the gambling sector due to their exposure to money laundering risks, particularly in online environments where transactions can occur rapidly and with limited face-to-face interaction.
The regulator also highlighted growing threats linked to identity fraud and payment fraud within the online gambling sector. “The online gambling sector faces heightened threats from identity and payment fraud, and it’s important that the whole sector continues to work to mitigate these threats.”
“Strong AML compliance is the best way to fight financial crime; let’s work together to stamp out criminal abuse of the online gambling sector,” Thomas added.
Reuters reported that AUSTRAC first ordered an audit of Sportsbet in 2022 as online betting activity surged during and after the COVID-19 pandemic, when many consumers shifted towards digital gambling platforms.
AUSTRAC scrutiny extends across the sector
Sportsbet’s remediation is complete as AUSTRAC continues to tighten oversight of Australia’s gambling industry. In May, the regulator launched an investigation into Tabcorp’s AML/CTF controls following concerns about its compliance framework. The probe is examining the company’s anti-money laundering programme, customer monitoring and risk controls. AUSTRAC is also pursuing separate court proceedings against Entain, owner of Ladbrokes and Neds, over alleged breaches of Australia’s AML/CTF laws, highlighting broader regulatory pressure on the sector.
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