Entain PLC (LSE:ENT) is being investigated by the Australian financial crimes regulator to determine whether it complied with the country's anti-money laundering and counter-terrorism laws.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) started the probe, for the period between July 2016 and June 2020, following a probe into the entire corporate bookmaking sector.
"Reporting entities have a responsibility to ensure they identify, assess and manage risks of money laundering and terrorism financing, develop adequate processes and devote the necessary resources to comply with their AML/CTF obligations," Nicole Rose, AUSTRAC chief executive, said.
Online sports betting have taken off in Australia since the pandemic began when shops were forced to close during lockdowns.
Entain, which has approximately one-sixth of Australia’s betting market via the Ladbrokes brand, and its larger rival Flutter Entertainment PLC (LSE:FLTR), both reported substantial revenue rises in the last two full calendar years.
The London-listed company, which confirmed it is cooperating with the investigation, has already been fined £17mln by the British gambling regulator for "completely unacceptable anti-money laundering and safer gambling failures."
Despite the news, its shares made a modest 0.9% jump to 1,229.7p in early afternoon trading.