James Packer, Crown Resorts Chairman, speaks as he launches Crown Resorts' second Reconciliation Action Plan on July 31, 2015, in Melbourne, Australia. (Photo : Getty Images)
A senior executive of the biggest casino operator in Australia has been detained by Chinese government in Shanghai for alleged involvement in gambling crimes. The government did not provide any further details on the matter.
The New York Times reported that the senior executive was accompanied by three other fellow Aussies who were on a business visit to China. All of them were arrested on Thursday. The apparent reason for this raid was that these Australians were luring in rich Chinese gamblers to Australian casinos.
According to the Chinese law, casino gambling is rendered illegal in mainland China. Moreover, the law also prohibits agents to organize groups comprising of more than ten Chinese citizens for gambling abroad. This marks as a crime, punishable for up to three years of imprisonment
Foreign casinos have been making attempts to get onboard with high-roller Chinese residents who have been avoiding Macau due to President Xi Jinping's prevalent crackdown on casino corruption especially in the offshore enclave, the only place where casinos are legally allowed.
According to The Wall Street Journal, last year the Chinese police arrested 34 Chinese agents and 13 casino managers from South Korea who were allegedly selling packages related to free tours, hotels and sexual services.
Crown, the company behind the three Australians, refused to give information as to why its men were in China. It only stated that the casino's business had taken a huge upturn because of the ramped up overseas marketing.
The Foreign Affairs and Trade Department in Australia claims that it had been notified of these detentions on Monday. The Department consular officials are now arranging for visits to China saying that the Australians had legal representation.
Crown's shares took a huge nosedive of 14 percent. This was the biggest single-day reduction in the company's history. However, one must not be oblivious to the fact that crackdowns are pretty common in China. Arrests occur all the time, especially of those from Korean descent.
