• Home
• bet365 Agrees to AML Remediation Plan with AUSTRAC in Australia

bet365 Agrees to AML Remediation Plan with AUSTRAC in Australia

bet365 Agrees to AML Remediation Plan with AUSTRAC – Australian Regulator Tightens Oversight of Online Wagering Sector

Key Takeaways

• bet365’s Australian entity has entered into a legally binding undertaking with AUSTRAC to address AML and CTF compliance failures.
• An investigation covering July 1, 2016 to November 2, 2022 found significant deficiencies in risk assessment, customer due diligence, and suspicious matter reporting.
• The company must implement a revised AML framework and submit progress and final audit reports by December 31, 2026 and July 30, 2027.
• Breaches of the undertaking may result in civil penalties under both the undertaking and Australia’s AML CTF Act.

AUSTRAC Investigation Identified Long Standing Compliance Gaps

Hillside Australia New Media Pty Ltd, the Australian arm of bet365, has agreed to an enforceable undertaking with the Australian Transaction Reports and Analysis Centre. The agreement follows an investigation by the financial crime regulator into the company’s anti money laundering and counter terrorism financing controls.

AUSTRAC first raised concerns about bet365’s AML processes in August 2022. Later that year, the regulator ordered an external audit of the company’s operations. The compliance assessment and subsequent audits examined bet365’s AML CTF practices over a period spanning from July 1, 2016 to November 2, 2022.

Audit reports issued in September 2023, along with an independent review completed in February 2025, identified significant deficiencies in the operator’s compliance framework. According to AUSTRAC, bet365 failed to maintain an adequate AML CTF program, in breach of Section 81 of Australia’s AML CTF Act. The regulator also found that the company did not conduct ongoing customer due diligence for certain customers.

For users of online betting platforms, AML and CTF controls are directly linked to how operators monitor transactions, verify identities, and report suspicious activity. Weaknesses in these systems can expose companies to regulatory sanctions and operational restrictions.

Legally Binding Undertaking Requires Structural Reforms

Under the enforceable undertaking, bet365 must implement a series of remedial measures aimed at strengthening its AML CTF framework. These measures include establishing a more robust and ongoing risk assessment framework and enhancing systems for detecting and reporting suspicious transactions.

The company has also committed to upgrading its customer risk assessment models and improving control documentation and testing procedures. In addition, bet365 must complete a revised money laundering, terrorism financing and proliferation financing risk assessment.

The undertaking sets legally enforceable minimum standards. If bet365 fails to comply with its obligations, it may face civil penalties under both the terms of the undertaking and the AML CTF Act.

Clear deadlines have been defined. The operator must submit a midway progress report to AUSTRAC by December 31, 2026. A final independent auditor’s report is due by July 30, 2027, confirming that all agreed remedial measures have been fully implemented.

For comparison platform users evaluating betting providers in Australia, these timelines define the regulatory roadmap that bet365 must follow in order to demonstrate compliance improvements.

Regulator Highlights Structural Money Laundering Risks in Gambling

AUSTRAC Chief Executive Brendan Thomas stated that strong risk assessments and diligent reporting are essential to protecting Australia’s financial system. He emphasized that gambling businesses pose an inherent money laundering risk.

According to Thomas, the gambling industry processes large volumes of money at high speed, often through anonymous digital channels. These characteristics create opportunities that criminals may seek to exploit. He noted that businesses must continuously improve their systems to assess risks and monitor for suspicious activity, as gaps in controls can have consequences beyond a single company.

The regulator’s statements underline the broader compliance expectations placed on online wagering operators. For platforms that accept digital payments and process large transaction volumes, ongoing monitoring and reporting obligations form a core part of regulatory oversight.

Increased Scrutiny Across Australia’s Online Wagering Market

The action involving bet365 takes place against a backdrop of heightened regulatory attention on Australia’s online gambling sector. AUSTRAC is currently pursuing civil penalty proceedings in the Federal Court against Entain Group over alleged AML CTF failings. The regulator has also previously taken enforcement action against Sportsbet.

These parallel proceedings indicate that enforcement activity is not limited to a single operator. Instead, AUSTRAC appears to be applying sector wide scrutiny to ensure that licensed wagering companies meet their statutory obligations.

For international users who compare crypto friendly or digital first betting platforms, regulatory developments in major markets such as Australia can affect platform operations, compliance procedures, and in some cases product availability. While the enforceable undertaking does not itself suspend operations, it places bet365’s Australian entity under formal compliance supervision with defined reporting milestones.

Our Assessment

bet365’s Australian entity has entered into a legally binding undertaking requiring substantial reforms to its AML and CTF framework after audits identified significant compliance failures between 2016 and 2022. The agreement imposes specific corrective measures and reporting deadlines extending to July 2027, with potential civil penalties for non compliance. The case forms part of broader enforcement activity by AUSTRAC targeting AML and CTF controls within Australia’s online wagering industry.