Bet365 Faces Probe in Australia for Compliance Issues

Australia’s financial crime watchdog, the Australian Transaction Reports and Analysis Centre (Austrac), has initiated an investigation into the UK-based online gambling firm Bet365 concerning its adherence to anti-money laundering and counter-terrorism financing regulations.

This move follows Austrac’s directive for an external audit of Bet365 in 2022, aimed at evaluating the company’s compliance practices.

Bet365 has yet to respond to requests for comment from BBC regarding the investigation.

The surge in online betting during the pandemic has brought heightened scrutiny to the industry, prompting regulatory bodies to ensure that businesses have robust systems in place to combat financial crime. Austrac CEO Brendan Thomas emphasized the importance of effective risk management processes, highlighting the vulnerability of businesses lacking such measures to exploitation by criminal elements.

In addition to Bet365, Ladbrokes owner Entain has been under investigation in Australia since 2022, while another competitor, Sportsbet, is undergoing an external audit.

Australian law mandates that firms assess customers and monitor their financial transactions to detect and mitigate the risk of money laundering or terrorism financing. Companies found to have inadequate compliance systems could face fines imposed by Austrac.

This scrutiny on online gambling firms coincides with other challenges in the Australian market, including recent legislation prohibiting the use of credit cards for online gambling and stricter federal regulations on advertising.

Despite these challenges, Bet365’s Chief Executive Denise Coates reported a significant loss last year. However, her total compensation, including dividends, amounted to over £1 billion over the past four years, making her one of Britain’s wealthiest women and among the highest-paid executives globally.

Ms. Coates founded Bet365 over two decades ago in a portable building in Stoke-on-Trent and has since established herself as a prominent figure in the industry.