The CEO of Australia’s anti-money laundering regulator (AUSTRAC), Brendan Thomas underlined that regulatory efforts around the gambling sector are set to be intensified with the body “not in the business of continuing to educate without action”.
Thomas was speaking at the Regulating the Game conference in Sydney this week, as he underpinned AUSTRAC’s strong approach to regulatory enforcement.
Amidst a sector that has become increasingly fuelled by technological advancements and digital frameworks, Thomas revealed that AUSTRAC is evolving in the way it approaches its regulatory strategy.
The AUSTRAC CEO revealed the shift moves the body from “pure compliance to a proper discussion about risk so that we can talk to you about what that risk actually is and then we can focus practically on what are the controls that are directly aimed at those risks rather than just ticking a bunch of compliance boxes”.
Thomas revealed that this is part of a wider strategy to eliminate the bureaucracy out of the compliance process, as the group strengthens its approach to compliance and is making “significant changes”.
As part of the enhanced action, the body emphasised that it is going to increase actions as opposed to simply educating.
Thomas said: “It is important that businesses understand their legal obligations because I’m prepared to take strong and swift action where it is warranted.”
“If you expect AUSTRAC to educate, educate, educate and then take action years later, you’re mistaken. If you think your business is too small to take responsibility for regulatory compliance, you’re also mistaken. Your services in the gambling industry have been subject to a regulatory regime for many years now and it is your responsibility to comply.”
The evolution of AUSTRAC’s approach coincides with a new bill on money laundering and counter terrorism, the Financing Amendment Bill 2024, which significantly elevates the governance of AUSTRAC
As a result of the new bill, the gambling sector can deepen partnerships and collaborations with a myriad of other regulated sectors that now fall under AUSTRAC’s umbrella.
These include real estate professionals, lawyers, accountants, trust and company service providers, and dealers in precious stones and metals.
Thomas utilised his speech to emphasise the group’s dedication to building collaborations with these other industries as the gambling sector develops.
The new approach from AUSTRAC comes amidst significant legal cases in the region involving Star Entertainment and Entain.
Star Entertainment latest
In the most recent update on the compliance issues involving The Star Entertainment Group, the group confirmed that its shares have been automatically suspended from trading on the Australian Securities Exchange
The operator had been scheduled to submit its half-year financial report for the period ending 31 December 2024 last Friday – 28 February 2025 – as required by the ASX Listing Rules.
Nonetheless, the group fell short in these requirements causing its shares on the ASX to be automatically suspended as a result.
The Star said that the suspension will remain in effect until the 1HFY25 Report is lodged and the ASX determines that its shares should be reinstated to quotation.
The group noted that it is “unlikely to be in a position to lodge its 1HFY25 Report unless, and until, it has secured a refinancing commitment that would enable The Star to refinance all of the Group’s existing corporate debt, as well as to provide additional liquidity”.
“The company will continue to keep the market informed of material developments,” the announcement said.
“As noted in the company’s recent ASX announcements, there remains material uncertainty as to the group’s ability to continue as a going concern.”
