AUSTRAC, the national financial intelligence agency, has released an Explanatory Statement accompanying the new Rules, making it clear that gambling is among the industries under the spotlight. The agency has consulted extensively with the gambling sector, as well as with other high-risk industries such as real estate, accounting, law, and virtual assets.

A stronger framework against financial crime

The government frames the reforms as overdue. According to the Explanatory Statement, “Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime establishes a regulatory framework for combating money laundering, terrorism financing and other serious financial crimes. At its core, the AML/CTF regime is a partnership between the Australian government and industry”.

For casinos, online betting operators, and iGaming platforms, this partnership means deeper obligations to scrutinise customers, transactions, and risk exposure.

AUSTRAC insists the changes are a response to major vulnerabilities. The document warns that “without reform to address these problems, the AML/CTF regime will become increasingly less effective and more wasteful over time. The costs of inaction are significant”.

With estimates suggesting that money laundering could equal “up to 2.3 per cent of GDP”, gambling operators are bracing for tighter compliance demands.

What the new rules mean for gambling operators

The 2025 Rules replace large parts of the 2007 AML/CTF instrument and restructure obligations in a clearer, more topical format. For gambling businesses, this translates into:

Customer due diligence (CDD): Casinos, bookmakers, and iGaming operators must identify and verify customers’ identities, assess money laundering/terrorism financing (ML/TF) risks, and apply enhanced checks where needed.

AML/CTF programmes: Firms are required to maintain compliance programmes that “appropriately identify, mitigate and manage the money laundering/terrorism financing (ML/TF) risks associated with the provision of designated services”.

Reporting duties: Suspicious matter reports (SMRs) and threshold transaction reports (TTRs) remain central. The Rules introduce “updated reportable details for threshold transaction reports (TTRs) and suspicious matter reports (SMRs)”.

Travel rule and value transfer: Operators handling electronic transfers, including payments and virtual assets, will need policies to ensure payer and payee details travel with transactions.

The Explanatory Statement stresses that these obligations are not optional. “Persons providing designated services—known as ‘reporting entities’—must enrol (and, in certain circumstances, register) with AUSTRAC”.

Industry consultation and concerns

AUSTRAC claims to have listened closely to the gambling industry, among others, throughout the drafting process. “AUSTRAC established 9 sector-based Rules & Guidance Working Groups. The purpose of the working groups was to work with industry on the development of the Rules through focusing on sector-specific issues,” commented the agency.

These sessions, held over late 2024 and 2025, gave casinos and betting companies the opportunity to raise operational concerns. According to the Statement, “feedback received from industry on the working groups was positive, and members communicated that participating in the working groups assisted with their submissions on both the ED1 and ED2 Rules”.

Nevertheless, the reforms are not without cost. Expanding obligations to so-called “tranche two” sectors and strengthening compliance across existing ones will add billions in regulatory burden. The government concedes that implementing some of these rules “is estimated to result in an additional regulatory burden to businesses of $13.9 billion over 10 years”. For gambling operators already grappling with responsible gambling frameworks and state licensing regimes, this will be a significant new layer of compliance.

International pressure and the FATF

The urgency behind the reforms is partly international. Australia has been under pressure from the Financial Action Task Force (FATF), the global watchdog, to tighten its AML/CTF regime. “The FATF promotes compliance and effective implementation of the standards through peer assessment mechanisms—known as mutual evaluations—and public listing of jurisdictions found to have weak AML/CTF systems”.

Failure to act risked Australia being placed on the FATF’s “grey list,” a designation that could severely harm its reputation and financial standing. The government admits the reforms are essential in “minimising the likelihood of grey-listing and any associated economic and reputational damage, which may be up to $10.7 billion over 10 years”.

For gambling companies, many of which rely on international payment processors and global customer bases, this context makes compliance not just a domestic regulatory issue but a matter of market access and trust.

What comes next

The timeline is now set. From 31 March 2026, new obligations will begin for existing reporting entities, including casinos and online betting platforms, while enrolment opens for newly captured sectors.

The Explanatory Statement concludes with a reminder of the stakes: “The reforms to the AML/CTF regime ensure that Australia’s AML/CTF regime continues to effectively deter, detect and disrupt illicit financing, and protect Australian businesses from criminal exploitation”.