A trio of controversies have emerged in the Australian gaming space this week, involving three of the country’s biggest gaming groups – heritage brand Tabcorp, overseas giant Entain, and lottery leader The Lottery Corporation.
In this first edition of SBC News’ Oceania Overview, we take a look at the scrutiny each firm is facing, all of which comes in the context of a forthcoming clampdown on gambling advertising in Australia – though reform advocates believe more needs to be done.
Tabcorp under the eye of AUSTRAC
Tabcorp is being investigated by AUSTRAC, the Australian financial crimes agency, over AML/CTF issues.
The investigation, which was announced to the business on Thursday and is said to be at an early stage, comes amid concerns around the company’s ability to effectively identify, mitigate and manage its money laundering / terrorism financing risks.
It will initially focus on evaluating Tabcorp’s compliance with its obligations under the AML/CTF Act in relation to having a compliant AML/CTF Program, complying with that AML/CTF Program and appropriately monitoring customers.
Tabcorp shares on the Australian Securities Exchange have plummeted since the announcement, dropping by over 23% from the close of play on Wednesday to market close today, now sitting at AU $0.88.
Seniors at the business have been quick to say that they will comply with AUSTRAC.
Tabcorp Chairman, Brett Chenoweth, said: “Tabcorp takes its anti-money laundering and counter-terrorism financing obligations very seriously.
“The Board and Executive are fully committed to collaborating with AUSTRAC in the continuing uplift in Tabcorp’s ML/TF risk maturity.”
This is not the first time that Tabcorp has been involved in an ordeal with Australian regulators.
In February, the business was charged $158,400 after breaching the country’s in-play betting rules for the third time since 2021.
Regulators have been ramping up the pressure on operators around Australia, and this is the latest, and potentially largest, example of it.
Lottery Corporation’s 40-year deal under microscope
The Lottery Corporation, a major stakeholder in the Australian gaming space, scored one of the biggest wins in its short four-year history this week.
The firm, created in 2022 via the spinning off of market leader Tabcorp’s lotteries and keno division, signed a 40-year contract to run lottery games for the state of Victoria. State lottery contracts are usually just 10 years.
Wayne Pickup, Chief Executive Officer of the Lottery Corporation, said that extension “allows The Lottery Corporation to continue to responsibly deliver safe, engaging and sustainable entertainment to Victorians for many years to come”.
From a commercial and financial standpoint, this contract is a massive win. The Lottery Corporation has contracts with four of Australia’s six states – New South Wales, Queensland, South Australia and Victoria – plus the Capital Territory. The closest contract expiry date is 2050.
From a PR standpoint, it’s less of a win, however. The contract has raised eyebrows among both the Liberal Party and the Greens in Victoria, with the former labelling it a ‘secret deal’ covering a timeframe far larger than any typical Victorian lottery contract.
Jess Wilson, Leader of the Victorian Liberal Party and leader of the Victorian opposition, also cited The Lottery Corporation’s prior history of donating to the Labor party, which governs Victoria under the leadership of Premier Jacinta Allan.
“This is a deal that should have been done for the next 10 years, but instead we’re seeing a deal done for 40 years,” she said, speaking to Sky News Australia. “There are serious questions for Jacinta Allan to answer here. Why did this not go out to a public tender? Why is this such a secret deal?”
The Victorian Greens, meanwhile, have accused the Labor government of ‘doing dodgy deals’ with the Lottery Corporation ‘in the name of getting votes at the next election’ and to support its state budget announcement on Monday.
The party has told the Victorian Labor government it should use the industry to support its budgetary ambitions – but through tax.
“If this Labor government had any integrity and guts they would properly tax the gambling corporations to pay for the things we need, not do dodgy deals with them,” said Ellen Sandel, leader of the Victorian Greens.
“Jacinta Allan’s budget was good for Labor’s corporate donors, not for everyday people. Labor just locked Victorians into a half a lifetime deal with a gambling corporation so they can receive kickbacks from their gambling company donors.”
Sandel has previously taken aim at Labor and accused it of closeness to the gambling industry and its lobbyists. A pinned video on the politician’s X account shows her pointing out parcels left at the hotel rooms of Labour MPs, which she identifies as having been left by the Australian Hotels Association (AHA) – branded the ‘pokies lobby’.
Entain in trouble again?
The Lottery Corporation is far from the only major stakeholder to face the music this week. UK-based multinational Entain is one of the biggest overseas operators in Australia via its Ladbrokes Australia and Neds brands.
The Australian Communications and Media Authority (ACMA), effectively the federal gambling regulator, found that self-excluded BetStop registrants were able to create Ladbrokes and Neds accounts. The regulator identified over 500 breaches of national self-exclusion rules.
In response, an Entain Australia spokesperson told SBC News: “We take all our regulatory responsibilities seriously. These matters arose during the early stages of a new national system, and we have worked constructively with the ACMA to implement meaningful enhancements to our processes and controls.”
The ACMA investigation comes amid a much more serious probe into the company’s Australian operations. AUSTRAC, the financial regulator, is pursuing legal claims against Entain, with a final court date of 30 November 2026 set by the Federal Court.
Entain maintains that it has done no wrongdoing in the face of the AUSTRAC investigation. Regardless, the cases against it don’t exactly help the industry’s image amid widespread and seemingly neverending political scrutiny.