Visitors wait for the casino hotel Crown Macau official opening May 12, 2007 in Macau, China. (Photo : Getty Images)
The Chinese government has just announced that it will be extending the investigation period to further probe into the alleged charges filed against the staff from James Packer's Crown Resorts. The Australian billionaire has made the resolution of this problem as his top priority.
Last October, a total of 18 Crown employees were detained in a coordinated police operation across several Chinese cities, with several being chased from criminal charges. Among those who are in detention is Jason O'Connor, Crown's vice president for international VIP operations.
The coordinated raids are part of President Xi Jinping's campaign against anti-corruption which targets money laundering and illicit money transfers offshore. This campaign has negatively impacted the gambling industry in China, scaring away the high rolling patrons of the junkets.
Gambling is illegal in the mainland and casino companies are prohibited from directly marketing their gaming centers. Crown was warned in 2015 to stop luring Chinese high rollers to gamble overseas.
According to experts and gambling industry insiders, the arrests shows that the Xi government is intent on enforcing its rules on marketing and promotion of gambling in the country.
In response to the arrests, Packer announced that it would reduce its stake in Macau-based casino operator Melco Crown and pulled out of a casino project in Las Vegas. The arrest has sparked concern from other gambling companies who are operating in China.
"Chinese authorities have advised that the investigation period has been by one month," said a spokeswoman from Australia's Department of Foreign Affairs and Trade. The Australian government added that they continually extend help for the three Australian Crown workers who are still detained in China.
Upon his return to the Crown board this month, Packer announced that resolving the problem in China was his top priority.
While this may extend troubles for Packer, it shows that the government will not make any exceptions to the rule, not even for foreign business.
