Online gambling firm Bet365 probed in Australia

Australia's financial crime authority, Austrac, is investigating Bet365, a UK-based online gambling company, for potential violations of anti-money laundering and counter-terrorism financing regulations.

Austrac previously mandated an external audit of Bet365 in 2022.

The company has yet to comment on the investigation, according to the BBC.

The online betting industry has seen increased regulatory attention after a pandemic-driven surge in activity. Austrac's CEO, Brendan Thomas, emphasized the risk of criminal exploitation when businesses lack strong compliance processes.

Austrac monitors entities like banks, casinos, and betting firms to ensure they actively prevent financial crimes. Similar investigations are ongoing into Entain, owner of Ladbrokes, and Sportsbet, with both subjected to external audits.

Australian regulations require that firms conduct due diligence on customers and track their transactions to prevent money laundering and terrorism financing. Non-compliant companies risk heavy fines from Austrac, which has previously fined Westpac and Commonwealth Bank for similar compliance breaches.

The sector is also adapting to new challenges such as a credit card ban for online betting and tighter advertising regulations.

Despite reporting a loss last year, Bet365's CEO Denise Coates received a salary and dividends totaling over £271 million, with her pay over the last four years exceeding £1 billion. Coates, who started Bet365 in a temporary structure in Stoke-on-Trent, is now among the UK’s wealthiest women and one of the world’s highest-earning executives.