Australia’s anti-money laundering watchdog, AUSTRAC, has issued a warning saying it will be keeping a close eye on compliance and won’t hesitate to take action against gambling companies that don’t meet their obligations.
Speaking at the Regulating the Game conference in Sydney on Thursday (Mar. 13), AUSTRAC CEO Brendan Thomas made it clear that the gambling industry is still very much in the spotlight.
According to Gambling Insider, he kicked off his speech by revealing that serious and organized crime costs the country AUD 68 billion ($42.74 billion) annually. He also pointed out that the country’s illicit drug market is worth around AUD 12.6 billion ($8 billion) per year, while tax fraud alone is estimated to cost between AUD 1.8 billion ($1.1 billion) and AUD 6.3 billion ($4 billion) annually.
He said the watchdog has plenty of ongoing activities in the sector, even as it moves toward wrapping up long-running cases against casino giant Star Entertainment Group and online betting operator Entain for compliance failures.
Yesterday our CEO, Brendan Thomas, addressed the Regulating the Game conference in Sydney, outlining the money laundering risks faced by the gambling sector, and urging businesses to take these risk seriously, to stamp out illegal activity and protect the community from harm. pic.twitter.com/WB7iRgCFQx
— AUSTRAC (@AUSTRAC) March 14, 2025
He also promised that while the watchdog is willing to work with the industry to achieve the right outcomes, its patience isn’t unlimited.
AUSTRAC calls for action from gambling industry
He said: “I’ve been the CEO of AUSTRAC for just over a year and I’m so proud of the work that we’ve done in that time to reduce the harms to our community.
“But while I’ve been working with the industry and our reporting entities to reduce that harm, AUSTRAC is not in the business of continuing to educate without action. It is important that businesses understand their legal obligations because I’m prepared to take strong and swift action where it is warranted.”
Thomas continued: “If you expect AUSTRAC to educate, educate, educate and then take action years later, you’re mistaken. If you think your business is too small to take responsibility for regulatory compliance, you’re also mistaken. Your services in the gambling industry have been subject to a regulatory regime for many years now and it is your responsibility to comply.”
Risk assessments
He urged both large and small gambling operators to conduct thorough risk assessments to pinpoint where they are most vulnerable to criminal infiltration. He stressed that it aligns with the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024, which was passed by the federal parliament last year.
The bill, which updates the previous 2006 act, expands AUSTRAC’s reach to cover several new industries, including real estate professionals, lawyers, accountants, trust and company service providers, and dealers in precious stones and metals. It also introduces changes to how entities are expected to comply with their obligations under the law.
Featured image: AUSTRAC via X
