No charges yet as China formally arrests Crown Resorts staff
Crown Resorts staff have been formally arrested by Chinese police but authorities have not provided any details about what charges they might face.
The formal arrests following the period of detention officially ends the period when representatives could negotiate an early release.
The formal arrest means Crown staff will now be held in jail for at least six months while police finalise their case.
Details of the exact crime and charges will be revealed when the case is handed to prosecutors.
Crown staff were detained by police for “gambling related crimes” following a series of raids in four Chinese cities in October.
Jason O’Connor, the head of Crown’s international VIP program, is the most senior Australian in custody. Two other Australians held in custody are Jerry Xuan, the Beijing-based director of international marketing for Crown and Pan Dan, who goes by the English name Jenny. The identity of a fourth Australian has yet to be revealed.
The arrests are part of a co-ordinated effort by Chinese authorities to crack down on the promotion of gambling in the world’s second largest economy. Macau is the only place in China where casino gambling is legal. Casino revenues in Macau have declined with the crackdown on corruption by China’s government which has kept Chinese high-rollers away from the hub.
While the weekend marked 37 days since the apprehension of Crown staff and while Foreign Minister Julie Bishop has maintained that the Chinese legal system requires formal charges to be laid in 37 days, at the most, following an arrest, it is understood these rules can be flexible if authorities decide further investigations are needed.
Analysts say there is a question of whether the Chinese government is redefining what foreign casinos are allowed to promote in China and whether they are making an example of Crown. This could make it harder for Chinese to get money out of the country.
That means other casino operators around the world would be vulnerable as high rollers could start avoiding those companies with casinos offshore.
Global ratings agency Standard & Poor’s has warned that casino hubs targeting Chinese VIP clients for Macau face increased risks by using aggressive promotions.
“We see rising downside risks for emerging gaming markets targeting VIP gamers from China,” S&P said.
“These operators may see potentially higher provisions for doubtful accounts receivable from VIP customers and declining gaming revenues from the Chinese government’s tightening control on casino-related marketing activities in China.”
by Leon Gettler, November 21st 2016
