Expert Reports Criticised in Entain and AUSTRAC Case

Australian Federal Court Judge Cameron Moore handed The Star Entertainment a AU$260 million penalty this week. He has now turned his attention to the case between Entain and the regulator AUSTRAC, where he has criticised the expert reports submitted by both sides. According to the Australian Financial Review, Moore criticised the experts for relying too heavily on whether a document produced within the company did or did not contain certain content.

AUSTRAC argues that Entain, which operates the Ladbrokes and Neds brands, allowed 17 high-risk customers to spend more than US$152 million without proper background checks. The case goes to trial next month. Entain, for its part, said it had introduced new AML and CTF measures during this process.

The judge said AUSTRAC's expert had only reviewed Entain's risk register without showing real expertise. The expert listed missing issues and said the company's assessment was not reasonable. AUSTRAC, however, argued that Entain's expert had used the same method, and Moore agreed with this view.

The Star, which is owned by Bally's, has highlighted the progress it has made since the penalty, including its new management and compliance programme. Many in the industry believe that operators have largely escaped regulatory breaches in recent years. If the Entain case ends with a similar result, it could be a turning point in that picture.

According to a report published in August by Adam Glezer of Consumer Expert, ACMA had issued only two financial penalties to operators that breached the BetStop rules.