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Welfare of Crown employees detained in China our 'top priority': chairman

Thursday, 20 Oct 2016 11:43:50 | Kathryn Diss

China's crackdown could hurt Crown's operations in Melbourne, Sydney and Perth (pictured). (By Florence Roca)

The welfare of employees detained in China is Crown's top priority, Chairman Robert Rankin said in his address to shareholders at the company's annual general meeting in Perth.

Eighteen sales and marketing executives, including three Australians, are under investigation for alleged illegal luring of Chinese VIP gamblers and have now spent a week in prison.

If convicted, they could face up to 10 years in prison as China's anti-corruption crackdown hits the gaming industry.

Crown also announced at the meeting it was spinning off 49 per cent of its hotels and retail property business.

Mr Rankin said his immediate concern was the safety of arrested employees.

"Our number one priority is to provide them and their families with all the support we can at this difficult time," Mr Rankin said.

"Given the lack of information available, it is not possible for anyone to be able to provide any informed commentary on these detentions.

"Likewise any assessment at this time as to any material impact on our business is both premature and speculative.

"No formal charges have been laid against our staff, the investigation continues and they are of course entitled to a presumption of innocence.

Mr Rankin said the company continued to work with the department of Foreign Affairs and Malaysian consular officials — as well as legal representatives in China.

Crown named one of the Australians arrested as Jason O'Connor, the head of the company's VIP international team, he is responsible for attracting wealthy high rollers to Crown's casinos in Australia.

VIP play turnover in Australia for this financial year was $65.1 billion, down 8 per cent.

The company said that was a reasonable outcome given the strong growth in the prior comparable period of 41.8 per cent and the depressed nature of VIP gaming activity across Asia.

Another thorn in the Crown


James Packer's Crown gambling empire is bleeding from China's high-roller gaming crackdown.

Billionaire casino magnate and major shareholder in Crown, James Packer, expressed "deep concern" for the employees.

A report emerged yesterday which said Crown was warned by Chinese officials last year to halt its efforts to attract high rollers, angering family members of the detained workers.

Foreign Minister Julie Bishop last night spoke publicly for the first time about the arrests and said consular officials had spoken to two of the three detained Australians.

Gaming companies are not allowed to explicitly advertise gambling in China. They can only promote tourism offers to the former Portugese colony of Macau, which is the only territory in China where casinos are allowed.

In its last profit update, Crown cited a rise in foreign visitors to Australia — particularly those from China — as a highlight, given that the Macau operation is hurting from the China corruption crackdown.

Crown's three Chinese casinos are on the island of Macau.

The fallout could hurt Crown's operations in Melbourne and Perth, along with James Packer's new project at Barangaroo in Sydney, which would have no poker machines and have a heavy reliance on high rollers, including ones from China.

Crown shares took a major hit on news of the arrests which wiped more than half a billion dollars off the value of the stock but have since regained ground.

AustraliaPlus


 

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