Austrac Initiates Probe into Bet365 for Possible AML Violations

Author:

Olivia Phillips

|Published: March 7th, 2024

The Australian Transaction Reports and Analysis Centre (Austrac) has launched an inquiry into Bet365 over potential breaches of anti-money laundering (AML) and counter-terrorism financing (CTF) laws.

Austrac mandated an audit of Bet365 in 2022 to assess its compliance with the AML/CTF Act 2006. Following the evaluation, Austrac deemed further investigation into Bet365's operations necessary.

Austrac, holding the authority to act upon non-compliance, possesses fines and regulatory powers.

Brendan Thomas, Austrac CEO, emphasized, "Corporate bookmakers must have robust systems to manage risks associated with money laundering and terrorism financing."

Bet365 Faces Potential Penalties

Bet365 may join the ranks of fined betting companies in Australia following Austrac's agreement with Crown Resorts in July 2023 for AML breaches, which resulted in an AU$450m penalty.

Crown Resorts admitted "serious and systemic" AML and CTF failings, including sustaining a business relationship with a casino junket operator linked to organized crime.

Entain has also been under Austrac investigation for AML/CTF concerns since September 2022. The case is pending resolution, possibly leading to scrutiny of other bookmakers.

Austrac filed proceedings against Star Entertainment Group and SkyCity Adelaide in 2022 for AML and CTF law breaches, awaiting case outcomes.

Bet365's Financial Performance

Despite an 18.9% revenue increase to £3.39bn in 2022-23, Bet365 reported a £61.2m loss, compared to £42.8m profit the previous year.

Direct costs rose by 4.1% to £516.6m, administrative expenses increased by 42.2% to £2.93bn, resulting in a £37.3m operating loss. Fair value investments showed a £62.6m loss, partly offset by £27.2m interest income.

Bet365 justified increased spending, anticipating higher revenues and expanding its presence in North America, especially in US states and Ontario, Canada, where it leads the market.

Ed Birkin, senior analyst at H2 Gambling Capital, sees Bet365 competing strongly in the US against Tier 2 operators like BetMGM and ESPN Bet.