WGM sister publication Inside Asian Gaming reports that according to multiple sources on the ground, Chinese authorities detained 18 Crown Resorts employees on Thursday night, including three Australian citizens. One of those Australian citizens is a senior executive, Mr Jason O’Connor, who is Group Executive General Manager VIP International. Also among those detained is Senior Vice President China, Alfread Gomez.
The incident raises questions over the collection of debts from Chinese players arising as a result of casino play at Crown, speculated by unconfirmed sources to be north of AU$100 million.
Employees were taken into custody following a coordinated police operation across at least four major cities including Beijing, Shanghai and Guangzhou. They are believed to be part of Crown’s sales and marketing team.
While it remains unclear whether any charges have been laid, Australian foreign minister Julie Bishop is expected to front the media in Canberra tomorrow after speaking with Chinese officials. The consular agreement between the two countries gives China a 72 hour deadline to inform Australia should it hold any Australian nationals. That deadline expires tonight.
This latest development follows a similar operation in June 2015 in which Chinese authorities arrested 13 executives from South Korea’s two biggest foreigner-only casino operators – Paradise Group and Grand Korea Leisure, who own the Walkerhill and 7 Luck casino brands respectively. The Koreans stand accused of trying to lure Chinese players to gamble at their properties and 16 months later are yet to be released.
Group Executive General Manager VIP International Jason O’Connor who is being held by authorities in China [Image: LinkedIn]
Chinese police also launched a high profile raid of the Nanjing Millions poker event in April 2015, placing a number of staff from tournament organizer PokerStars under house arrest and laying charges against two local Beijing men named as co-organizers.
All three incidents have seemingly served as a strong message from President Xi Jinping that neither gambling nor its promotion will be tolerated in mainland China under his watch. In August last year China’s Ministry of Public Security launched Operation Chain Break, targeting international casino operators’ agent networks in mainland China. The operation is expressly designed to keep such casinos from marketing to Chinese gamblers and to minimize capital flows out of China via foreign casinos and junket operators.
Industry sources have told Inside Asian Gaming there is a precedent of people being detained in China in similar cases – sometimes without charges being laid for over a year. It remains unclear what other foreign casino sales and marketing teams are currently operating in mainland China and whether they are being hurriedly pulled out of the country.
Australia’s Department of Foreign Affairs and Trade says it is currently trying to confirm reports with the relevant Chinese authorities. Crown Resorts’ largest shareholder, James Packer, is currently in Monte Carlo and could not be reached for comment.
