As it deals with legal action from the Australian Transaction Reports and Analysis Centre (AUSTRAC), Entain, a prominent player in Australia’s gambling sector, is going through major leadership changes. A number of executives have left the company after the regulator accused it of violating anti-money laundering and counter-terrorism financing regulations.
Following the recent departure of Cameron Rodger, Managing Director of Entain New Zealand, Lachlan Fitt, who has served as CFO and Deputy CEO of Entain Australia since 2018, has resigned. Their exits follow the sudden resignation of Gavin Isaacs, the company’s worldwide CEO, a few days prior.
Fitt, who was instrumental in Entain’s mergers and acquisitions strategy, reflected on his departure. “Now is the right time to move on to my next chapter,” he stated. “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, who had led Entain New Zealand since mid-2023, also stepped down after spending over a decade at TAB New Zealand before joining Entain.
AUSTRAC Investigation Sparks Industry Scrutiny
The executive departures take place at the same time as AUSTRAC is suing Entain. In December, the regulatory body initiated civil penalty procedures, claiming that the business intentionally disregarded anti-money laundering regulations.
According to AUSTRAC, AU$152 million ($97.19 million) in wagers were taken in by Entain from 17 high-risk clients connected to illegal activity. According to court documents, the firm increased the likelihood of illegal financial transactions by purposefully hiding the identity of these consumers.
The allegations caused Entain’s stock to drop nearly six percent. At the time, Isaacs acknowledged the seriousness of the accusations. “We note the allegations made, which we take extremely seriously,” he said. The company has yet to present its defense in court.
Despite the ongoing legal battle, Entain insists it is committed to strengthening its compliance measures. In a statement to the London Stock Exchange, the company acknowledged that the proceedings could lead to financial penalties.
“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 stated in December.
Following Isaacs’ departure, Non-Executive Chair Stella David has stepped in as interim CEO. In a statement, David thanked Isaacs for his contributions as the company navigates this challenging period.
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