China detains ten more in Crown investigation

China’s further investigations into the alleged illegal gaming activities of Australian-based Crown Resorts Ltd. has led to the arrest of ten more people, The Australian newspaper reported yesterday.
According to the news outlet, the latest detainees are ‘organisers of junkets licensed by the casino operator to bring high rollers to its Australian properties’, and were some of the 87 Crown customers questioned by the Chinese authorities following the recent arrest.
On October 14, Chinese authorities detained 18 Crown Resort employees for illegal gaming activities, including the vice president of the group’s international VIP team, Jason O’Connor, in addition to two other Australian citizens.
The article stated that the Chinese authorities had been tracking the Crown team for about a year, and that one of the group’s executives was warned by a customer based in Shanghai two weeks before authorities acted. However, Crown has stated that none of its employees was ‘aware or received any warning from Chinese authorities before the arrests’.
According to the newspaper, Crown believed it could operate discreetly in China, as long as it adhered to rules limiting marketing activities, and that Chinese authorities acted after realising the amount of money going from China to Australian gaming tables.
The newspaper stated that industry sources said Crown customers were ‘furious’ that the company’s database was reportedly in possession of the Chinese authorities, after the employees’ computers and smartphones were seized upon arrest.
Chinese authorities were also reported to have obtained information on other casino resort promotion teams, such as 12 employees working for Australian gaming and entertainment group Star Entertainment Group Limited, with most of them having left the country already.
According to The Australian, the largest shareholder of Crown Resort – Perpetual Limited – had sold more than one-third of its shares in the group, albeit sales had started prior to the arrests.
Gaming analysts stated recently that the arrests could be an attempt to target promotional activities of non-Chinese casinos, with no intention to pursue Macau casino promoters and junkets, as reported by Business Daily. However, they believed the arrests could lead to an overall feeling that all gaming activities are unwelcome, forcing Macau VIP market players and junket agents to keep a low profile.