Australia’s financial intelligence and regulatory agency, AUSTRAC, has officially completed its engagement with online betting operator Sportsbet Pty Ltd after confirming the company had completed a major remediation program to address anti-money laundering and counter-terrorism financing (AML/CTF) deficiencies.
The regulator stated that Sportsbet has resolved systemic issues previously identified in its compliance framework and has implemented necessary improvements across its governance, monitoring and reporting systems.
Ongoing Compliance Expectations Remain
AUSTRAC Chief Executive Brendan Thomas said the results reflected regulators’ expectations that companies act quickly when deficiencies are discovered.
“When AUSTRAC identifies systemic weaknesses in a reporting entity’s AML/CFT controls, we will take enforcement action to ensure the issues are addressed,” he said.
He added that Sportsbet has completed the necessary changes and the regulator is now satisfied with the results of the remediation process.
"Sportsbet was required to undertake significant improvements to improve its systems, controls and governance. AUSTRAC is now confident that these requirements have been met.”
Although the workable undertaking has now closed, AUSTRAC stressed that the completion of the process does not reduce the ongoing obligations for operators in high-risk sectors such as online betting.
Thomas said regulated gambling businesses must continue to maintain robust systems designed to prevent criminal exploitation.
"The completion of workable measures does not dampen our expectations. Businesses such as Sportsbet operating in high-risk sectors must maintain robust, risk-based systems to prevent criminal exploitation.” he said.
The regulator also reiterated the importance of continued vigilance in the wider gambling industry, especially given the speed and scale of digital transactions.
“The online gambling sector is facing increasing threats of identity and payment fraud, and it is important that the entire sector continues to work to mitigate these threats,” Thomas said in an AUSTRAC press release.
“Strong AML compliance is the best way to fight financial crime – let’s work together to eradicate criminal abuse in the online gambling sector.”
Background to the Enforcement Action
This workable measure was initially accepted in May 2024 after AUSTRAC identified concerns relating to Sportsbet’s AML/CFT obligations. Issues highlighted include weaknesses in risk assessment processes, customer monitoring systems and suspicious reporting procedures.
The action follows a wider review of the Australian betting company sector, in which the regulator assessed compliance standards across online betting operators.
Sportsbet, owned by Vibrating Entertainmentit first came under stricter regulatory scrutiny in 2022 when AUSTRAC ordered an external audit as part of wider oversight of the sector.
The review was launched amid rapid growth in online betting activity in Australia following the disruption of brick-and-mortar gambling venues during the COVID-19 period.
As part of its enforceable efforts, Sportsbet was required to strengthen five key areas of its AML/CFT framework, including governance structures, customer due diligence systems and reporting mechanisms.
An independent external audit then verifies this Sportsbet has fully implemented the necessary improvements. AUSTRAC confirms that the audit findings support the closure of enforcement proceedings.
The regulator said the company had successfully operationalized all necessary changes, meeting the requirements set out in the agreement.
Continued Regulatory Focus on the Gambling Sector
Although the case has been closed, AUSTRAC confirmed it would continue to carry out strict supervision of the gambling industry, citing its vulnerability to the risk of financial crime.
The agency highlighted that the online gambling environment presents special challenges due to the speed of transactions and reduced face-to-face verification, which can increase exposure to illicit activity.
The resolution of the Sportsbet case is part of a wider enforcement approach in which AUSTRAC has increased oversight of digital betting platforms and associated financial systems.
The conclusion of this effort signals regulatory confidence in Sportsbet’s updated compliance system but also reinforces expectations for ongoing monitoring across the sector.
AUSTRAC’s position indicates that while remediation may cover individual enforcement actions, it does not reduce the intensity of ongoing compliance requirements for operators in the Australian online gambling market.
