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Another Australian detained in China

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Foreign minister Julie Bishop has confirmed that a fourth Australian has been detained in China with Crown employees.

The person is not a Crown employee but has been added to the 18 staff who were detained on “gambling crimes” a few weeks ago.

Police targeted billionaire James Packer’s Crown Resorts in an operation that has raised market concerns that stopping Chinese high rollers would affect the viability of Crown’s plan to build a major new hotel and casino complex at Barangaroo on Sydney’s waterfront.

Ms Bishop said the arrests could have an impact on the global gaming industry.

“I am sure every casino operator around the world is watching this case closely,’’ Ms Bishop told the ABC.

“There was a case 12 months ago with South Korean gambling representatives who were also detained and no doubt the casino owners around the world followed that case closely as well. This will have implications.”

The news coincides with Justice Minister Michael Keenan set to raise the case during a visit to Beijing this week.

Ms Bishop said negotiating consular access to the Australians had taken a bit more time as some were dual passport holders.

“We have determined all four will be treated as Australian citizens,” she told said. “We have a consular agreement with China, so we will be working pursuant to that agreement.”

It isn’t clear what charges the employees face but Ms Bishop said there should not be a delay beyond the 37 day detention period allowed under the law.

“At this stage, my understanding of the Chinese legal system is they can have 30 days to investigate people without charging them. Then that can be extended for a further seven days, at which time they either charge or don’t charge,” she said.

“We don’t have the details of why they are being held and what potential charges they face. It is clearly to do with gambling, which is illegal in China but there are exceptions when it comes to Macau. It may well be part of President Xi Jinping’s anti-corruption campaign involving government officials.”

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

More than a third of Crown’s revenue at its Australian resorts comes from international visitors, predominantly mainland Chinese.

Analysts have raised that the 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.

by Leon Gettler, October 31st 2016