AUSTRAC has given Sportsbet the green light after the operator addressed ‘serious deficiencies’ in its anti-money laundering controls.
Australia’s financial watchdog had raised concerns over the Flutter brand’s procedures in terms of risk assessments, customer monitoring and suspicious matter reporting.
AUSTRAC’s Chief Executive Officer, Brendan Thomas, said: “Sportsbet was required to undertake significant remediation to uplift its systems, controls and governance. AUSTRAC is now satisfied those requirements have been met.
“Completion of an enforceable undertaking does not lessen our expectations. Businesses like Sportsbet operating in higher-risk sectors must maintain robust, risk-based systems to prevent criminal exploitation.”
Sportsbet was handed an enforceable undertaking in May 2024 requiring the operator to make significant changes to its working practices across five key areas. AUSTRAC noted that an independent review of Sportsbet’s working practices assured that these appropriate remediation measures have been taken.
The watchdog emphasised the importance of stringent AML procedures due to the gambling sector’s susceptibility to money laundering risks, especially online.
“The online gambling sector faces heightened threats from identity and payment fraud, and it’s important that the whole sector continues to work to mitigate these threats,” added Thomas.
“Strong AML compliance is the best way to fight financial crime – let’s work together to stamp out criminal abuse of the online gambling sector.”
AUS advertising debate heats up
Elsewhere in Australia, Prime Minister Anthony Albanese has once again been forced to defend his party’s proposals to reform gambling advertising rules in the country by limiting the number of ads on TV per hour during the day and banning them during live sports events.
Opponents to the changes argue that they water down the recommendations made in a report published by the late MP Peta Murphy, which called for a complete ban on advertising.
Albanese argued that his party’s proposals go beyond the recommendations made in the report as they address the rise of online gambling and the threat of overseas gambling.
He told ABC Radio: “I’m not against someone having a punt on a Saturday. What I’m against is problem gambling, which overwhelmingly, by the way, is poker machines, which is of course regulated by the states. What we’ve done is consult over a period of time.”
Independent MP David Pocock accused the Prime Minister of ‘buckling to the gambling lobby’, and called for a complete ad blackout and a ban on bonus bets as ‘they are the most damaging part of the whole gambling advertising strategy’.
“I will not be part of a parliament that simply allows a prime minister to deliver for the gambling lobby at the expense of our children,” he said.
The new laws have now been sent to an inquiry which is expected to report back on 17 August.
