An investigation has been initiated by the financial crime watchdog of Australia against Bet365, a UK-based online gambling company, regarding its adherence to anti-money laundering and counter-terrorism financial laws.

Austrac has directed an external audit of the company to be conducted in 2022. Bet365 has yet to respond to the request for comment.

The gambling industry has faced increased attention since the pandemic resulted in a surge in online betting.

Brendan Thomas, CEO of the Australian Transaction Reports and Analysis Centre, has warned that businesses that lack sufficient processes to manage these risks are at risk of being exploited by criminals.

Austria is currently investigating banks, casinos, and betting companies to ensure that they have effective compliance systems in place to prevent them from profiting from illicit activities.

Entain, which owns Ladbrokes, is currently being investigated in Australia since 2022. Another competitor, Sportsbet, is undergoing an external audit.

According to Australian law, financial institutions are required to evaluate their customers and monitor their financial transactions to identify, mitigate, and manage the risk of money laundering or financial terrorism.

If Austrac finds any business to have weak compliance systems, they may face fines.

Major financial institutions Westpac and Commonwealth Bank have been fined heavily in recent years by the watchdog for violating the laws against money laundering and terrorism financing.

Additionally, the online betting industry is facing new regulations in Australia, including a prohibition on using credit cards for online gambling and stricter federal government guidelines on advertising.

Bet365 reported a substantial loss last year, but its CEO, Denise Coates, received a payment of approximately £221m. This amount was £7m higher than the previous year, and Coates also received at least £50m worth of dividends. With the pay increase, her total salary for the past four years exceeded £1bn.