AUSTRALIAN CASINO REGULATION
of the AUSTRAC proceedings against each of the Crown Group and The Star will be relevant when assessing the possible outcome of these proceedings. At this stage, only some of the Australian casino operators (that is, the larger Australian casino operators) have been the subject of regulatory scrutiny. Of course, the regulatory scrutiny against the Australian casino operators described in this article relate only to investigations and disciplinary action by Australian regulators that has been made publicly available (most likely due to the fact that the relevant regulators consider that those investigations, and the outcome of those investigations, are matters in the public interest). There is always a risk that the other Australian casino operators have been (or will be) the subject of a closed-door investigation. It is clear from the increased scrutiny of Australian regulators that, at some stage in the near future, all of the Australian casino operators are at the risk of regulatory investigations (and perhaps disciplinary action) by an Australian gambling regulator (at the very least). Moreover, the broader Australian gambling sector is likely to be reviewed in a similar manner (indeed, this has already begun). In the last six months, AUSTRAC has initiated various investigations into Australian sports bookmakers. More specifically, AUSTRAC has: • commenced an enforcement investigation into online wagering operator Entain Group Pty Ltd (operating in Australia under the Ladbrokes brand). AUSTRAC will investigate whether Entain complied with its obligations under the AML/CTF Act during the period of July 2016 to June 2020; and
obligations under the AML/CTF Act and the Anti-Money Laundering and Counter- Terrorism Financing Rules Instrument 2007 (No.1) (AML/CTF Rules). Future impact T here is no doubt that the Australian gambling sector is highly regulated. The recent findings of significant misconduct and non-compliance across the Australia casino sector will lead to further regulatory restrictions for Australian casino operators (this process has already begun in certain States, such as New South Wales and Victoria). However, the public perspective of inherent non- compliance embedded in the Australian casino sector and, by extension the broader Australian gambling sector, will be long-lasting. There is unlikely to be public sympathy for greater restrictions being imposed. While international investment will remain active in the Australian gambling sector, there is a real risk that the recent events in the Australian casino sector (in particular, the findings of serious misconduct and non-compliance by Australian casino operators, as well as the consequential changes made to State casino legislation which have resulted in a stricter regulatory framework, may impact the transaction risk appetite for gambling sector transactions. This risk is further fuelled by the uncertainty around the possibility of further State legislative changes which may have an adverse impact on the conduct of a gambling business (including, for example, increased tax rates) and concerns about the certainty and financial security associated with investments of this nature. Certainly, Australian gambling operators will need to review the manner in which business has been, and is being, conducted and consider the changes required to not only address any previous non- compliance, but to also ensure ongoing compliance with not only relevant gambling laws, but all applicable laws.
JAMIE NETTLETON Partner, Addisons
SOPHIE BATEY Associate, Addisions
SHANNA PROTIC DIB Senior Associate, Addisons For information contact ++61 2 8915 0114 shanna.proticdib@addisons.com
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appointed External Auditors for Sportsbet and bet365 to assess compliance with
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IMGL MAGAZINE | JANUARY 2023
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