Australia’s financial crime watchdog AUSTRAC has cleared Sportsbet after the Flutter-owned operator completed a regulator-mandated anti-money laundering (AML) remediation programme.
Confirming the news, AUSTRAC said it had finalised the enforceable undertaking accepted by Sportsbet in May 2024. An independent external auditor verified Sportsbet had successfully implemented the required improvements to its AML and counter-terrorism financing (CTF) controls.
The undertaking was introduced following concerns identified during AUSTRAC’s supervision of the online wagering sector. This required Sportsbet to strengthen its governance, risk management, customer monitoring and reporting processes.
“When AUSTRAC identifies systemic weaknesses in a reporting entity’s AML/CTF controls, we will take enforcement action to ensure those issues are addressed,” AUSTRAC CEO 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.”
How Sportsbet came under scrutiny
Sportsbet, Australia’s largest online bookmaker, first came under AUSTRAC scrutiny in 2022. The regulator directed Sportsbet to appoint an external auditor as part of a wider review of the online wagering sector.
Following the audit, Sportsbet entered into an enforceable undertaking with AUSTRAC in May 2024. This saw it commit to strengthening its AML/CTF framework, governance and customer monitoring processes under the oversight of an independent auditor.
AUSTRAC has now confirmed those obligations have been fulfilled, bringing the undertaking to a close. The watchdog said that it would continue to monitor the gambling sector “closely”, noting its exposure to money laundering risks.
“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,” Thomas said.
“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.”
