Tabcorp’s full-year profits have been hit by new ventures and legal action over money laundering.

The gambling firm’s full-year net profits are down 49 per cent to $169 million this year, although it did see a 1.5 per cent increase in revenues to $2.2 billion.

The fall was driven largely by a one-off $163 million tax benefit that fell out of the results in 2016.

Underlying profits were up 8.5 per cent to $186 million.

But there were other costs too.

Tabcorp spent about $14.4 million establishing a new online wagering business with News Corporation, offset by a $12 million income tax benefit.

Tabcorp also noted a $13.6 million cost from civil proceedings initiated by the Australian Transaction Reports and Analysis Centre (AUSTRAC) last year.

The proceedings - under Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws - relate to allegations that a number of credit-betting incidents had been deemed “high risk” by AUSTRAC.

AUSTRAC recently expanded the Federal Court action to a total of 236 incidents under investigation.

AUSTRAC chief executive Paul Jevtovic has described the allegations as “serious”, claiming they were based on a systemic pattern of non-compliance.

The maximum penalty for a single contravention of the AML/CTF act is $18 million.