It’s another blow to the gambling industry following revelations out of inquiries into Star’s casinos raised allegations of money laundering.

AUSTRAC has also recently announced an investigation into another gambling company, Entain which owns Neds, Ladbrokes, Bookmaker and Betstar. AUSTRAC said it had put the whole industry on notice “to lift its game”.

AUSTRAC said the investigation into Bet365 and Sportsbet followed an “extensive supervisory campaign” into the corporate bookmaker sector.

The auditors have 180 days to examine Bet365 and Sportsbet in relation to its anti-money laundering and terrorism finance risks.

They auditors must also assess whether the gambling businesses were undertaking appropriate risk assessment inclusing the risks of customer types and the types of services they provide.

AUSTRAC said the outcomes of the audit would assist the two companies to comply with the financing oblligations relating to money laundering and terrorism financing.

“Where AUSTRAC identifies systemic failings we will intervene to ensure the integrity of Australia’s financial system,” chief executive Nicole Rose said.

“Sportsbet and Bet365 are amongst the largest operators in the corporate bookmaking sector.

“Money laundering feeds organised crime and all the harm that comes with it. We need businesses in the front line to fully comply with the AML/CTF Act, to understand and mitigate their risks and report suspected crimes.”