Crown Resorts staff apprehended in China

China has confirmed it has launched a criminal investigation into Crown Resorts staff for gambling related offences including a number of Australians.

In an emailed statement to The Australian Financial Review on Sunday, China’s Foreign Ministry said: “Australians are under criminal detention … for suspected involvement in gambling crimes.

“At this stage the case is under further investigation.”

The 18 employees are from Crown’s sales and marketing team.

According to Fairfax Media, one of them includes Jason O’Connor, Crown’s executive general manager in charge of international VIP services which has boosted Crown’s profits by bringing in Chinese high rollers.

Police reportedly raided the houses of the Crown employees in Shanghai, Beijing, Guangzhou and Chengdu

At this stage, it isn’t clear if any charges have been laid.

Crown, part owned by billionaire James Packer, has an enormous investment in China’s gambling hub of Macau, operating  a joint venture with Macau-based Melco International Development. The joint venture owns and operates a number of gaming and entertainment resorts.

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 casinos are not allowed to advertise on mainland China, Crown can still promote tourism and resorts where its casinos are located.

The detention of Crown Resorts staff comes at a time when relations between Australia and China are strained by Beijing’s territorial claims in the South China with the Turnbull government opposing the militarisation of the disputed islands and China refusing to accept the ruling of a United Nations Tribunal, which invalidated its claim to much of the South China Sea.

by Leon Gettler, October 17^th 2016