Entain Accused of Ignoring Money Laundering Red Flags in Australia

British gambling giant Entain, the owner of Ladbrokes, is facing serious allegations in Australia over its failure to act on suspected money laundering, allowing high-risk customers to gamble millions without proper scrutiny.

According to court documents filed by the Australian Transaction Reports and Analysis Centre (AUSTRAC), Entain allowed a customer to continue wagering despite betting over $1 million in a year and allegedly receiving funds from an individual subject to an international arrest warrant. Another customer was allowed to gamble more than $20 million between 2015 and 2022, despite being misidentified as a car yard owner when in fact he was unemployed.

The lawsuit, originally filed in 2023, outlines what AUSTRAC describes as widespread compliance failures by Entain. The agency accuses the company’s senior management of overlooking clear warning signs, placing both Entain and its banking partners at significant risk. Entain, which held a 17% market share in Australia last year and served nearly 2 million local customers, has previously faced regulatory action in the UK. In 2022, the company was fined £17 million ($29 million) for similar anti-money laundering breaches.

The allegations concern at least 17 customers and involve $152 million in suspicious transactions. One individual, referred to in filings as “Customer 13,” deposited $4.2 million across two Entain accounts over a seven-year period. By 2019, he was depositing nearly $69,000 per month, which increased to $94,000 monthly the following year — totalling $1.1 million annually. That same year, he submitted a bank statement that showed a $150,000 deposit, described as payment for a “granny flat.” The sender of the funds was listed as a person wanted for drug trafficking in Southeast Asia.

Despite these warning signs, AUSTRAC says Entain failed to take appropriate action. The employee managing Customer 13 reportedly admitted to having “no idea” where the customer’s money was coming from. Rather than investigating further, the same employee allegedly discouraged deeper inquiry, saying it might “scare him off.”

Another case involved “Customer 7,” who wagered $20.2 million with Entain brands Ladbrokes and Neds between 2015 and 2022. Despite the customer sharing a name with a convicted drug trafficker, Entain only began investigating in 2021. By that time, AUSTRAC notes the individual had already been making a pattern of irregular deposits and withdrawals for years.

In a separate incident, “Customer 15” made substantial deposits from overseas accounts. AUSTRAC alleges that Entain Australia CEO Dean Shannon personally reviewed the case and labeled the customer as “very low-risk,” citing his lengthy betting history as a mitigating factor.

“Customer 1,” who had a documented criminal record that included robbery and gang-related offences, was allowed to wager freely. AUSTRAC claims Entain had access to these records dating back to 2008 but did not take action. In one internal exchange, an employee reportedly urged the compliance officer not to contact the customer, saying the approach might “upset” them.

“Customer 17” reportedly wagered $30.8 million over five years and once deposited $1 million in a single month. He told Entain his wealth came from “speculative investments” but refused to identify any specific businesses he had sold. The company ultimately shut down his account in 2023 after determining that his claimed financial background didn’t support the scale of his gambling activity.

AUSTRAC’s broader crackdown on financial institutions has resulted in more than $2 billion in penalties since 2015. Major actions include a $1.3 billion fine against Westpac and $700 million levied against Commonwealth Bank.

Entain CEO Stella David responded to the allegations by stating that the company is taking AUSTRAC’s findings seriously. She announced that Entain would roll out updated anti-money laundering and counter-terrorism financing measures by June 2025. “We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector,” David said.

By fLEXI tEAM