Crown Resorts’ revenue plunges amid organised crime gang, money laundering claims
Crown Resorts has seen a dramatic plunge in high roller revenue after some of its junket partners were accused of links to Asian organised crime gangs and money laundering.
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Revenue from high rollers at Crown Resorts has plunged in the wake of accusations some of its junket partners have links to Asian organised crime gangs.
VIP player turnover at the casino giant’s Australian properties plunged 46 per cent for the period from July to October 20 compared to the same period a year earlier, it reported this morning.
The dramatic drop off was in contrast to a 2 per cent rise in main floor gaming revenue which does not include VIP play.
It follows allegation that some of its junket partners — organizations which bring in high rollers from China — had links to Chinese crime gangs and were using the casino to launder money.
Crown’s biggest junket operator, Hong Kong-based Sun City, has shut its private high roller rooms in Crown since the allegations were aired as it pulls back from the Australian market.
The trading update was provided ahead of Crowns general meeting in Melbourne today.
Executive chairman John Alexander again took aim at “sensationalist” reporting which was based on “unproven claims” stemming from allegations first raised five years ago.
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“Let me be clear — Crown does not tolerate any illegal activity by its employers or its patrons,” Mr Alexander told shareholders this morning.
“There are a number of interests and activists who continue to pursue an anti-Crown agenda.
“Crown operates in one of the most highly regulated and supervised industries in Australia.”