Crown arrests in China spark exodus

Almost all teams hired to promote casinos have left China since the Crown arrests, an industry source says.

Almost all members of teams in China hired to promote casino resorts have left the country since the arrest 11 days ago of 18 Crown employees, an industry source has revealed.

“Everyone has pulled out ­except, in the case of SkyCity, those Chinese citizens who have chosen to stay,” said the expert. “But their operations in China are all closed for now. Even those who are Chinese citizens have gone overseas, including to Hong Kong, for the time being.

“This leaves the casinos ­exposed, because they don’t have a Plan B” if the flow of Chinese high rollers slows or stops, the source said.

The industry expert said Australian and New Zealand casino resorts certainly had pulled out staff. Similar marketing teams from countries including The Philippines and Singapore — as well as from China’s special ­administrative region of Macau — were also believed to have stopped operating. Macau’s promotional activity already had been low key because licence renewals are due in 18 months.

SkyCity said it did not have any staff in China, but did use ­independent contractors: “We are very confident these contractors comply with all relevant laws and regulations.”

Yesterday China’s Foreign Ministry said it had no further ­information about the Crown detainees. The Public Security Ministry did not respond to ­requests for information.

It is understood senior executives from Australia’s consular service have briefed Crown chief James Packer on the situation.

Crown Resorts has hired Leezhao, a local law firm specialising in corporate work, to represent it in Shanghai in relation to the arrests. The firm has a strong reputation, especially representing Japanese companies.

Leezhao referred all questions from The Australian to Crown.

Shanghai-based Jeff Sikkema, whose wife Jenny Jiang was among those arrested, said a Lee­zhao lawyer had been able to visit her in a detention centre.

He said the lawyer reported Ms Jiang, who did administrative work for Crown, was “better, emotionally, than she was ­before”. Mr Sikkema and other spouses and relatives are not allowed to see those detained.

Li Hao, a director of Beijing Haosheng Law Firm, which specialises in gambling cases, said the arrests were no surprise.

“As a socialist country, China has always placed gambling alongside crimes such as rape and drug trafficking as grave ­social threats,” he said. “China worries that gambling not only degrades morality, but also ­causes severe capital outflows.

“The crackdowns will continue, and the high degree of pressure we are seeing on casino promotions will be maintained for a long time, without let up.”