Australians launch probe into Ladbrokes

enTaIn is being investigated in australia over whether it has been complying with rules designed to thwart money laundering and terrorism financing.

The owner of betting group ladbrokes was fined a record £17m by the UK gambling watchdog only a few weeks ago after a probe also covering money laundering concerns.

The investigation announced yesterday by australia’s financial crime regulator aUSTRaC covers a period from July 2016 to June 2020, and follows a preliminary assessment of companies across the sector by the watchdog.

Its powers can include seeking injunctions or fines in court, or referring cases for criminal investigations. But it may also take no action. no timetable for the investigation has been given.

aUSTRaC said companies covered by anti-money laundering and counter-terrorism financing laws ‘must take seriously their role in combating serious and organised crime’.

The watchdog’s chief executive nicole Rose said firms had ‘a responsibility to ensure they identify, assess and manage risks of money laundering and terrorism financing, develop adequate processes and devote the necessary resources to comply with their anti-money laundering and counter-terrorism financing obligations’.

entain said it was cooperating with the investigation.

Shares were untroubled by the announcement, climbing 3.2pc, or 39p, to 1257.5p.

entain accounts for about one sixth of australia’s online betting market. The sector has exploded in popularity since the pandemic kept punters away from betting shops.

It operates in the country under the ladbrokes, Bookmaker and Betstar brands. Its revenues from australia last year of £458m accounted for about 12pc of the group’s global total. It is reportedly vying for a state licence to run betting shops in Western australia – a push which could be jeopardised due to the probe, according to the business newspaper, australian Financial Review.

entain – whose brands also include Bwin, Foxy Bingo, and Coral – declined to comment on that claim.

last month the company was fined £17m by the UK’s Gambling Commission over what it described as ‘completely unacceptable antimoney laundering and safer gambling failures’.

It found entain did not assess the risks of its business ‘being used for money laundering and terrorist financing’ as well as failing adequately to monitor potentially vulnerable players.

Staff failed to block players who could not explain the source of their gambling funds, the commission found.

one was allowed to deposit £742,000 in 14 months without proper checks.