Australia Introduces Stricter AML/CTF Rules for Gambling Sector

Australia’s gambling and betting industry will soon be subject to sweeping new compliance requirements, with updated Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules scheduled to take effect in March 2026. The reforms, tabled in Parliament on 29 August 2025, are part of a broader push to strengthen the country’s financial crime defenses and align domestic standards with international benchmarks.

The measures will directly impact casinos, online sportsbooks, and iGaming platforms, alongside other high-risk sectors such as real estate, law, accounting, and virtual assets.

According to AUSTRAC, the national financial intelligence agency, the updated framework replaces large portions of the 2007 AML/CTF instrument and introduces clearer, more targeted obligations. The Explanatory Statement notes that “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 gambling businesses, this partnership translates into heightened responsibilities. Operators will need to apply enhanced customer due diligence, develop and maintain AML/CTF programs tailored to their risk exposure, and continue filing suspicious matter reports (SMRs) and threshold transaction reports (TTRs). The new Rules update reportable details for these obligations and also require policies to ensure that payer and payee information accompanies electronic transfers, including those involving virtual assets, in line with the “travel rule.”

The Explanatory Statement warns that failure to adapt would undermine the entire system. “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.”

The reforms come after extensive engagement with stakeholders. AUSTRAC established nine working groups during 2024 and 2025 to gather sector-specific feedback, including from gambling operators. The agency reported that feedback was positive, with participants noting that the process helped shape their submissions on draft rules.

Nevertheless, compliance will not come cheap. The government estimates the changes will add $13.9 billion in regulatory burden across affected industries over the next decade. For gambling businesses already balancing responsible gambling obligations and state-level licensing, the additional requirements represent a significant expansion of oversight.

Australia’s urgency in reforming its AML/CTF regime is also tied to international expectations. The Financial Action Task Force (FATF), the global anti-money laundering watchdog, has pressed Australia to close regulatory gaps. FATF conducts peer reviews, known as mutual evaluations, and publicly identifies jurisdictions with weak controls.

Government officials acknowledged that failing to strengthen the framework could have landed Australia on FATF’s “grey list,” a designation that carries serious economic and reputational consequences. Treasury estimates suggest the damage could reach $10.7 billion over ten years if the country had been listed.

For gambling operators with international exposure and reliance on global payment providers, the risk of grey-listing highlighted the importance of regulatory compliance not only as a domestic issue but also as a safeguard for continued market access.

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The new AML/CTF Rules will come into force in phases:

• 31 March 2026: Existing reporting entities, including gambling operators, will begin applying the updated obligations. Threshold transaction and suspicious matter reporting will remain unchanged until 2029.
• 31 March 2026: Enrolment begins for newly regulated “tranche two” sectors such as law, real estate, and accounting.
• 1 July 2026: Obligations commence for tranche two businesses.

AUSTRAC has committed to supporting operators through the transition. The agency stressed that all reporting entities must enroll or register as required and implement systems to identify, mitigate, and manage money laundering and terrorism financing risks.

In its conclusion, AUSTRAC reiterated the stakes of the reforms: “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.”

Source:

, austrac.gov.au, August 29, 2025