The deputy chief executive officer of one of the biggest gambling companies in Australia, Entain, has resigned in the midst of a high-profile legal challenge by the nation’s financial intelligence agency.
Lachlan Fitt has served as the chief financial officer of Entain Australia, which runs the Ladbrokes and Neds gambling brands in Australia, since 2018, and has driven the company’s mergers and acquisitions strategy.
The managing director of Entain NZ, Cameron Rodger, has also resigned, just one week after the global chief executive, Gavin Isaacs, left the company with immediate effect.
The resignations come at a delicate time for the global gambling giant, which was taken to the federal court by Australia’s financial intelligence agency (Austrac) in December. Austrac alleges Entain committed “serious and systemic non-compliance with anti-money laundering and counter-terrorism financing laws”.
Austrac accused Entain of accepting $152m in bets from 17 high-risk customers who had “suspected criminal profiles and associations” despite being aware they may have been laundering money, federal court documents allege.
Entain’s share price fell by almost 6% after Austrac alleged Entain “deliberately obscured the identities” of high-risk customers and failed to stop a “serious risk of criminal exploitation”.
When Austrac announced its civil penalty proceedings against Entain, Isaacs said that “we note the allegations made, which we take extremely seriously”. The company had yet to lodge its defence in court.
Guardian Australia does not allege any wrongdoing by Fitt, Rodger or Isaacs, who are not named in the legal proceedings.
In a statement, Fitt said that “after a decade as an international wagering executive, now is the right time to move on to my next chapter”.
“I am grateful to Entain for backing me, and particularly for the recent opportunity to work on starting the revitalisation of the New Zealand racing industry,” Fitt said.
Staff at the gambling company had been briefed on the matter and an internal message was due to be circulated later this morning.
Last week, the London-listed company confirmed Isaacs was stepping down with immediate effect.
A notice posted by Entain on the London Stock Exchange said the civil proceedings “may result in a penalty being levied which could be potentially material”.
“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 said in December.
“We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector for our customers, stakeholders and the wider community.”
The company’s non-executive chair, Stella David, had returned to the chief executive position. In a statement issued to the London Stock Exchange, David thanked Isaacs for his service.
“The board and management remain aligned on the Group’s focus on operational excellence and maximising shareholder value,” David said. “I look forward to leading the business as we continue to accelerate our performance.”
In Australia, Gambling Help Online is available on 1800 858 858. The National Debt Helpline is at 1800 007 007. In the UK, support for problem gambling can be found via the NHS National Problem Gambling Clinic on 020 7381 7722, or GamCare on 0808 8020 133. In the US, call the National Council on Problem Gambling at 800-GAMBLER or text 800GAM
