Judge criticises both sides' experts ahead of AUSTRAC's November trial against Entain

A Federal Court judge who recently ordered The Star Entertainment to pay AU$260m has raised concerns about the expert reports in the case between Entain and the financial regulator AUSTRAC, according to reports from the Australian Financial Review.

Justice Cameron Moore reportedly criticised experts on both sides for relying too heavily on what an internal corporate document did or did not contain. The document in question is Entain's risk register. He said AUSTRAC's expert had not offered real expertise, but had examined the register, identified topics that were missing and concluded that Entain's risk assessment was not reasonable.

AUSTRAC responded that Entain's expert had done the same thing, and Justice Moore agreed. In his view, Entain's expert also placed too much weight on the wording, or the absence of wording, in a single document.

The two parties are due to go to trial next month. AUSTRAC alleges that Entain, which is headquartered and listed in the UK and operates the Ladbrokes and Neds brands in Australia, allowed 17 high-risk customers to spend more than $152m without proper background checks. Entain has reportedly since introduced new anti-money laundering and counter-terrorism financing measures.

Earlier this week Justice Moore ruled in AUSTRAC's favour against The Star Entertainment, which is owned by Bally's, ordering the AU$260m penalty for AML and CTF breaches. Bally's told SBC it takes these historical matters and the obligations of casino operators very seriously, adding that it is encouraged by progress under The Star's new leadership and remediation programme, supported by Bally's compliance expertise.

The outcome of the Entain case could indicate whether enforcement is tightening in a market where many believe operators have largely avoided consequences for breaches. A report in August by consumer expert Adam Glezer found that the Australian Communications and Media Authority had issued only two financial penalties over BetStop breaches, while he said at least a dozen distinct wagering operators had been found in breach since its launch.

Public backlash against the sector has pushed Prime Minister Anthony Albanese towards stricter measures. His marketing restrictions were criticised by opponents as too lenient, with some calling for a full ban on gambling advertising, and the lack of a dedicated national gambling regulator remains contentious.