Betting company Tabcorp is being investigated by Australia’s anti-money laundering regulator over “serious concerns” in its ability to prevent illegal activity on its platform.
On Thursday morning, Tabcorp told the ASX it had received a letter from AUSTRAC that it had launched an investigation into its compliance with anti-money laundering and counterterrorism financial obligations.
The market responded swiftly to the news, with the wagering giant’s share price plummeting more than 25 per cent soon after the ASX opened on Thursday.
More than $500 million had been wiped off its market value within hours of the announcement. The company had a market capitalisation of $2.63 billion as of Wednesday night.
A spokeswoman for AUSTRAC said the regulator “can confirm that it has commenced an investigation into Tabcorp’s compliance with its obligations under the AML/CTF (anti-money laundering counter-terrorism financing) Act”.
“AUSTRAC will not comment in relation to the matter whilst the investigation is ongoing,” the spokeswoman said.
Tabcorp managing director and chief executive officer Gillon McLachlan said that he was “committed to leading a compliant and safe company that understands its risk obligations”.
“Uplifting our risk capability has been an ongoing part of the Company’s transformation and we will work constructively with AUSTRAC through this process,” McLachlan said.
Tabcorp’s announcement said AUSTRAC had advised that its investigation was at an early stage and its “approach will be determined once sufficient evidence has been collected and assessed”.
“AUSTRAC has also advised that all potential outcomes remain open, including the possibility that no further enforcement action will be taken,” Tabcorp’s statement said.
Tabcorp Chairman Brett Chenoweth said the board and the company’s executives were fully committed to collaborating with AUSTRAC.
“Tabcorp takes its anti-money laundering and counter-terrorism financing obligations very seriously,” Chenoweth said.
Betting companies are closely scrutinised by the national financial intelligence regulator due to the risks of money laundering through their platforms.
The investigation is not the first time Tabcorp has run afoul of AUSTRAC. In 2017, Tabcorp was fined $45 million over breaches of the anti-money laundering and counter-terrorism financing act between July 2010 and December 2015.
The case included claims that Tabcorp failed to inform AUSTRAC of suspicious illegal betting activity and suspected examples of credit card fraud.
McLachlan, a former CEO of the Australian Football League, took the reins at Tabcorp in 2024, and had overseen a strong rise in the company’s share price. Shareholders appeared to put their faith in his outlook for the wagering titan, having already approved remuneration packages and stock options expected to exceed more than $17 million during his short tenure.
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Elias Visontay is a National Consumer Affairs Reporter at The Sydney Morning Herald and The Age.Connect via email.From our partners
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: www.smh.com.au
