bet365 agrees to AML remediation plan with Australia’s AUSTRAC

bet365’s Australian entity has entered into a legally binding undertaking with Australia’s financial crime regulator to strengthen its anti-money laundering and counter- terrorism financing (AML/CTF) controls after an investigation identified significant compliance shortcomings.

Hillside (Australia New Media) Pty Ltd, the Australian arm of the online gambling operator, agreed to an enforceable undertaking with the Australian Transaction Reports and Analysis Centre (AUSTRAC) requiring it to overhaul its AML/CTF framework, including risk assessments, customer due diligence and suspicious matter reporting.

The action follows an AUSTRAC investigation triggered by an independent audit of bet365’s operations. The regulator first raised concerns about the company’s AML processes in August 2022 and ordered an external audit later that year.

The compliance assessment and subsequent audits examined the company’s AML/CTF practices between July 1, 2016 and Nov. 2, 2022. Audit reports issued in September 2023 and an independent review completed in February 2025 found significant deficiencies in bet365’s compliance framework.

bet365 failed to maintain an adequate AML/CTF programme, in breach of Section 81 of Australia’s AML/CTF Act, and did not conduct ongoing customer due diligence for certain customers, the regulator found.

Under the enforceable undertaking, bet365 has agreed to establish a more robust and ongoing risk assessment framework, strengthen systems for detecting and reporting suspicious transactions, upgrade customer risk assessment models, improve control documentation and testing, and complete a revised money laundering, terrorism financing and proliferation financing risk assessment.

The undertaking sets legally enforceable minimum standards, with breaches potentially attracting civil penalties under both the undertaking and the AML/CTF Act.

bet365 must submit a midway progress report by Dec. 31, 2026, followed by a final independent auditor’s report by July 30, 2027, confirming that the remedial measures have been fully implemented.

AUSTRAC Chief Executive Brendan Thomas said strong risk assessments and diligent reporting are critical to protecting Australia’s financial system.

“Gambling businesses pose an inherent money laundering risk, and we are focusing on the risks to the Australian economy from money laundering through this sector,” Thomas said. “The gambling industry processes large volumes of money at high speed, often through anonymous digital channels. This creates opportunities criminals look to exploit.“

“This means businesses need to continuously improve their systems to assess risks and monitor for suspicious activity because when controls fall behind, the consequences extend beyond a single company,” he added.

The regulator is also currently pursuing civil penalty proceedings in the Federal Court against Entain Group over alleged AML/CTF failings and has previously taken enforcement action against Sportsbet, underscoring increased regulatory scrutiny of Australia’s online wagering industry.