Entain's shares dropped nearly 7% following AUSTRAC's lawsuit alleging anti-money laundering (AML) violations in Australia. The British gambling giant, which co-owns BetMGM, allegedly accepted AU$152 million (US$96 million) in bets from 17 customers with suspected criminal connections.

AUSTRAC claims Entain knowingly continued business relationships with high-risk customers despite being aware of money laundering and terrorism financing risks. This marks AUSTRAC's first civil action against an online betting operator, following their AU$450 million fine against Crown Resorts in 2023.

Entain acknowledges the potential for a "material" penalty while stating they've fully cooperated with AUSTRAC and enhanced their AML protocols. Investment director Russ Mould at AJ Bell notes this issue could impact both Entain's balance sheet and reputation long-term.

The company has faced significant penalties before, including:

• £585 million fine from UK tax authorities in 2023 for alleged Turkish business bribery
• £17 million fine from UK Gambling Commission in 2022 for AML and social responsibility failures

Entain chairman Gavin Isaacs reaffirmed the company's commitment to preventing financial crime and supporting regulatory compliance in the gambling sector.

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