Australia’s financial intelligence and regulatory body AUSTRAC has officially finalised its enforceable undertaking with online wagering operator Sportsbet Pty Ltd after confirming the company has completed a major remediation programme addressing anti-money laundering and counter-terrorism financing (AML/CTF) deficiencies.
The regulator stated that Sportsbet had resolved the systemic issues previously identified in its compliance framework and had implemented the required upgrades across governance, monitoring and reporting systems.
Ongoing Compliance Expectations Remain in Place
AUSTRAC chief executive Brendan Thomas said the outcome reflects the regulator’s expectations that companies act quickly when shortcomings are identified.
“When AUSTRAC identifies systemic weaknesses in a reporting entity’s AML/CTF controls, we will take enforcement action to ensure those issues are addressed,” he said.
He added that Sportsbet had completed the necessary changes and that the regulator is now satisfied with the outcome of the remediation process.
“Sportsbet was required to undertake significant remediation to uplift its systems, controls and governance. AUSTRAC is now satisfied those requirements have been met.”
While the enforceable undertaking has now been closed, AUSTRAC emphasised that completion of the process does not reduce ongoing obligations for operators in high-risk sectors such as online wagering.
Thomas said regulated gambling businesses must continue to maintain strong systems designed to prevent criminal exploitation.
“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,” he said.
The regulator also reiterated the importance of continued vigilance across the wider gambling industry, particularly given the speed and scale of digital transactions.
“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 in AUSTRAC’s press release.
“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.”
Background to the Enforcement Action
The enforceable undertaking was originally accepted in May 2024 after AUSTRAC identified concerns relating to Sportsbet’s AML/CTF obligations. Issues highlighted included weaknesses in risk assessment processes, customer monitoring systems and suspicious matter reporting procedures.
The action followed a broader review of Australia’s corporate bookmaker sector, during which the regulator assessed compliance standards across online wagering operators.
Sportsbet, owned by Flutter Entertainment, was first drawn into closer regulatory scrutiny in 2022 when AUSTRAC ordered an external audit as part of its wider oversight of the sector.
That review was launched amid rapid growth in online betting activity in Australia following the disruption of physical gambling venues during the COVID-19 period.
As part of the enforceable undertaking, Sportsbet was required to strengthen five key areas of its AML/CTF framework, including governance structures, customer due diligence systems and reporting mechanisms.
An independent external audit later verified that Sportsbet had fully implemented the required improvements. AUSTRAC confirmed that the findings of this audit supported the closure of the enforcement process.
The regulator said the company had successfully operationalised all required changes, meeting the conditions set out under the undertaking.
Continued Regulatory Focus on Gambling Sector
Despite the closure of this case, AUSTRAC confirmed it will maintain close supervision of the gambling industry, citing its ongoing vulnerability to financial crime risks.
The agency highlighted that online gambling environments present particular challenges due to the speed of transactions and reduced face-to-face verification, which can increase exposure to illicit activity.
The completion of the Sportsbet case is part of a broader enforcement approach in which AUSTRAC has been increasing oversight of digital wagering platforms and related financial systems.
The conclusion of the undertaking signals regulatory confidence in Sportsbet’s updated compliance systems but also reinforces expectations for continuous monitoring across the sector.
AUSTRAC’s position indicates that while remediation can close individual enforcement actions, it does not reduce the intensity of ongoing compliance requirements for operators in Australia’s online gambling market.