Australia’s financial intelligence agency AUSTRAC has directed two northern casinos—The Ville Resort-Casino in Townsville, Queensland, and Mindil Beach Casino Resort in Darwin, Northern Territory—to appoint independent auditors to examine their anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.

Audit scope to include oversight, risk, and monitoring:

The decision comes in response to identified “potential gaps and deficiencies” in the casinos’ existing AML/CTF controls, risk assessments, and compliance oversight. Although these properties are considered smaller than major players like Crown Resorts or The Star, AUSTRAC emphasized that they still carry a high risk of criminal exploitation due to the nature of gaming operations.

“Although they may be smaller than entities such as Crown Resorts and The Star, like all gambling venues, The Ville and Mindil Beach face heightened risk of exploitation by criminals,” said AUSTRAC CEO Brendan Thomas. “AUSTRAC is serious about driving illicit money out of the gambling industry in Australia and making sure businesses that facilitate gambling have strong money laundering controls.”

The auditors, appointed at the expense of each casino, will evaluate how effectively the businesses are complying with the AML/CTF Act and associated regulations. This will include an assessment of their internal AML/CTF programs, their risk assessments related to money laundering and terrorism financing, the level of executive oversight, and how they monitor and manage customer risk.

The audits are not limited to internal policies—they will also examine how each venue delivers services and how those services might be vulnerable to criminal activity. As Thomas noted, “If you’re properly managing a compliant AML/CTF program, it is going to deter criminal behaviour and help us drive criminal activity out of your industry.”

As stated in the press release, AUSTRAC has already taken similar enforcement actions in recent years against other major gambling firms including Crown Resorts, Sky City, The Star, and online operators such as Entain, Sportsbet, and Bet365. The regulator said the outcomes of the new audits will determine whether further regulatory action is warranted.

Casino operators respond to regulatory demands:

The Ville Resort-Casino, which operates more than 370 gaming machines and 20 table games, released a statement expressing its willingness to cooperate fully with AUSTRAC. “The Ville Resort-Casino takes its obligations as a responsible casino operator incredibly seriously, particularly in relation to its key responsibilities in detecting and preventing financial crime,” a spokesperson stated. “The Ville will fully co-operate with AUSTRAC as part of the external audit process and we look forward to demonstrating our enhanced capabilities in anti-money laundering and counter-terrorism financing.”

Mindil Beach Casino Resort, which offers over 600 pokies and table games, including VIP areas, also signaled its compliance. General Manager Brad Morgan affirmed: “Mindil Beach Casino Resort … takes its regulatory and harm minimisation obligations seriously, always striving to ensure adherence with its compliance and regulatory obligations. This includes areas such as anti-money laundering/counter-terrorism financing, responsible service of gaming and responsible service of alcohol.”

These latest developments come amid heightened focus on Australia’s gambling sector, which remains one of the largest per capita globally. Thomas reiterated AUSTRAC’s broader enforcement priorities, saying: “My message to boards and CEOs of gambling businesses, including pubs and clubs with gaming machines, is to make sure you comply with Australian money laundering laws and take your responsibility to tackle money laundering seriously; we are watching and we will take further action.”

AUSTRAC will finalize the audit scope and determine any follow-up measures once the reviews are completed. The agency maintains that ensuring robust compliance in the gambling industry is essential to disrupting financial crimes and protecting Australia’s financial system from abuse.