Bet365 Agrees to Austrac Remediation Plan in Australia

Bet365 Agrees to Austrac Remediation Plan – Australian AML Controls Under Regulatory Oversight Until 2027

Key Takeaways

• Bet365’s Australian subsidiary has agreed to an enforceable undertaking with Austrac following identified AML and CTF deficiencies.
• The compliance review covered the period from 1 July 2016 to 2 November 2022.
• Austrac found failures to maintain an adequate AML and CTF programme and gaps in ongoing customer due diligence.
• A final independent auditor report confirming remediation must be submitted by 30 July 2027, with a progress update due by 31 December 2026.

Austrac Investigation Focused on AML and CTF Controls Between 2016 and 2022

Bet365’s Australian arm, Hillside Australia New Media Pty Ltd, has agreed to a remediation plan with the Australian Transaction Reports and Analysis Centre, known as Austrac. The agreement follows a compliance assessment and a series of external audits examining the operator’s anti money laundering and counter terrorism financing controls.

The review covered the period from 1 July 2016 to 2 November 2022. Austrac first raised concerns about Bet365’s AML processes in August 2022. In November 2022, the regulator mandated an external audit to assess whether the company’s controls met statutory requirements.

The enforceable undertaking was accepted by Austrac chief executive Brendan Thomas in early July 2025. It remains in force until it is formally cancelled by Austrac or withdrawn by Bet365.

Audit Findings Identified Breaches of the AML and CTF Act

According to Austrac’s reports, the audits identified significant shortcomings in Bet365’s compliance framework. A report dated 12 September 2023 and a subsequent independent review in February 2025 confirmed deficiencies in the company’s AML and CTF programme.

One key finding was a failure to maintain an adequate AML and CTF programme, constituting a breach of section 81 of the AML and CTF Act. Austrac also identified a lack of ongoing customer due diligence for certain customers. Ongoing customer due diligence is intended to ensure that operators monitor customer activity and risk profiles over time.

At the time the external audit was mandated in 2022, Austrac’s chief executive stated that corporate bookmakers must have robust systems in place to manage and mitigate risks associated with money laundering and terrorism financing. He noted that businesses without adequate processes leave themselves vulnerable to exploitation by criminals.

Bet365 formally acknowledged the concerns raised by Austrac and voluntarily agreed to undertake remedial actions under section 197 of the AML and CTF Act.

Remediation Plan Requires Risk Assessment and Control Upgrades

Under the enforceable undertaking, Bet365 must complete a revised money laundering, terrorism financing and proliferation financing risk assessment. This includes reassessing the risks associated with its operations and implementing updated controls where necessary.

The company is also required to upgrade its customer risk assessment models. In addition, it must enhance control documentation and testing measures to demonstrate that its AML and CTF framework operates effectively in practice.

An independent auditor will oversee the process. A midway progress report must be submitted to Austrac by 31 December 2026. A final auditor report is due by 30 July 2027 and must confirm that all remedial actions have been fully implemented.

Austrac stated that its expectations for the remediation include progress toward broader AML and CTF reform, as well as improved identification and mitigation of emerging risks.

Regulatory Context: Increased Scrutiny of Corporate Bookmakers

The action involving Bet365 follows other enforcement steps taken by Austrac against operators in the gambling sector. In December 2024, Austrac launched civil penalty proceedings against Entain over alleged AML and CTF failings.

In response at the time, Entain acknowledged certain deficiencies in its previous AML and CTF compliance programme but disputed some of the allegations and interpretations made by the regulator.

The proceedings against Entain and the enforceable undertaking with Bet365 indicate continued regulatory attention on AML and CTF compliance within the Australian corporate bookmaker market. Austrac has emphasised the need for effective systems to prevent criminal misuse of gambling platforms.

What This Means for Users of Online Betting Platforms in Australia

For customers, the enforceable undertaking does not announce operational changes such as service suspensions or market exits. Instead, it focuses on internal compliance controls and governance.

The requirement to upgrade customer risk assessment models and strengthen ongoing due diligence suggests that operators may apply more detailed monitoring of customer activity and risk profiles. These measures are part of the broader AML and CTF framework that licensed operators in Australia must maintain.

The remediation timeline, extending to mid 2027, places Bet365’s Australian business under structured regulatory oversight for several years. Independent audit reports will serve as formal checkpoints to verify progress.

Our Assessment

Bet365’s agreement to an enforceable undertaking with Austrac follows identified breaches of the AML and CTF Act related to programme adequacy and ongoing customer due diligence. The remediation plan requires updated risk assessments, enhanced customer risk modelling and strengthened control documentation, with independent audit verification through 2027. The case forms part of wider regulatory action by Austrac targeting AML and CTF compliance among corporate bookmakers operating in Australia.