Entain, one of Australia’s largest gambling operators, is experiencing a wave of executive departures as it faces legal proceedings brought by the Australian Transaction Reports and Analysis Centre (AUSTRAC) over alleged breaches of anti-money laundering and counter-terrorism financing laws.
Lachlan Fitt, who has served as Entain Australia’s Deputy Chief Executive Officer and Chief Financial Officer since 2018, has announced his resignation. His departure follows that of Entain New Zealand’s Managing Director, Cameron Rodger, who has also stepped down. These exits come just a week after global CEO Gavin Isaacs resigned from the company with immediate effect.
Fitt, who played a key role in Entain’s mergers and acquisitions strategy, stated that his departure comes after a decade as an executive in the wagering industry. “Now is the right time to move on to my next chapter,” Fitt said. “I am grateful to Entain for backing me, and particularly for the recent opportunity to work on starting the revitalization of the New Zealand racing industry.”
Rodger’s resignation comes after more than a year as Managing Director of Entain New Zealand, a role he took on following Entain’s partnership with TAB New Zealand in mid-2023. Before joining Entain, he spent over a decade working with TAB New Zealand.
These resignations coincide with ongoing legal challenges for Entain. In December, AUSTRAC initiated civil penalty proceedings against the company, alleging that it failed to comply with anti-money laundering and counter-terrorism financing regulations.
The regulator claims that Entain accepted AU$152 million ($97.19 million) in bets from 17 high-risk customers with suspected criminal links, despite being aware of potential money laundering activities. According to court filings, AUSTRAC also accused Entain of deliberately obscuring the identities of these high-risk customers and failing to prevent the risk of criminal exploitation.
Following AUSTRAC’s legal action, Entain’s share price dropped nearly six percent. At the time, Isaacs responded by acknowledging the seriousness of the allegations. “We note the allegations made, which we take extremely seriously,” he said. Entain has yet to file its defense in court.
While AUSTRAC’s case is ongoing, Entain has stated its commitment to compliance improvements. A notice posted on the London Stock Exchange acknowledged that the legal proceedings could result in a penalty.
“We have cooperated fully with AUSTRAC throughout its investigation and we are implementing further enhancements to Entain Australia’s anti-money laundering and counter-terrorism compliance arrangements,” Isaacs said in December.
In the wake of Isaacs’ resignation, Entain’s Non-Executive Chair, Stella David, has taken over as interim CEO. In a statement to the London Stock Exchange, David thanked Isaacs for his contributions.
Original article: https://www.yogonet.com/international/news/2025/02/21/95791-entain-executives-resign-amid-legal-scrutiny-by-austrac-over-alleged-compliance-failures
