A Federal Court judge who recently handed The Star Entertainment a AU$260 million penalty has voiced serious concerns regarding the expert reports submitted in the upcoming legal proceedings between Entain and financial intelligence agency AUSTRAC.
According to reports from the Australian Financial Review, Federal Court Justice Cameron Moore has criticized experts representing both sides for placing excessive reliance on what was or was not included within an internal corporate document.
Entain and AUSTRAC are set to head to trial next month after the regulator alleged that the UK-headquartered and listed operator, which manages the Ladbrokes and Neds brands in Australia, allowed 17 high-risk customers to spend upwards of $152 million without conducting proper customer due diligence and background checks. In response to historical scrutiny, Entain has since implemented enhanced anti-money laundering (AML) and counter-terrorism financing (CTF) compliance frameworks.
Scrutiny over expert methodology
During pre-trial hearings, Justice Moore accused AUSTRAC’s designated expert of failing to provide genuine specialized expertise, arguing instead that the witness merely reviewed Entain’s internal risk register. The judge noted that the expert essentially pointed out which topics were absent from the document and subsequently declared Entain’s risk assessment unreasonable based on those omissions.
To counter this argument, legal representatives for AUSTRAC pointed out that Entain’s expert adopted a nearly identical methodology. Justice Moore agreed with this assessment, highlighting that both parties’ experts relied too heavily on the specific wording, or lack thereof, within a single internal record rather than conducting a broader independent evaluation of operational practices.
Broader regulatory climate and Star Entertainment penalty
The courtroom debate unfolds against a backdrop of intensified regulatory enforcement across the Australian gambling landscape. Earlier in the week, Justice Moore ruled in favor of AUSTRAC in its enforcement action against The Star Entertainment, ordering the Bally’s-owned casino operator to pay a AU$260 million penalty for severe AML and CTF law violations. Bally’s responded by emphasizing its commitment to regulatory obligations and acknowledging the significant remediation progress achieved under new leadership.
Should the upcoming judgment in the Entain case result in a similar outcome, industry observers suggest it could mark a major turning point for a market where critics argue operators have frequently avoided stringent penalties. Highlighting regulatory gaps, a consumer report published in August by expert Adam Glezer revealed that the Australian Communications and Media Authority (ACMA) had issued only two financial penalties to operators breaching self-exclusion rules under BetStop, despite dozens of distinct breaches being identified.
Amid widespread public backlash against the gambling industry, Prime Minister Anthony Albanese has faced pressure to introduce stricter operational measures. While recent marketing restriction packages faced political opposition for being overly lenient, with critics demanding a complete ban on gambling advertising and the establishment of a dedicated national regulator, the outcome of the Entain versus AUSTRAC trial will be closely watched when proceedings commence next month.
