Crown defends use of junkets: it’s not just us

Crown Resorts has doubled down in the defence of its business, which has been accused of links to Asian crime gangs.

Crown Casino in Melbourne

Crown Resorts has doubled down in the defence of its business, which has been accused of links to Asian crime gangs, arguing the casino giant’s use of junket operators is not unique.

The Australian-listed company, backed by billionaire James Packer, has been rocked by a series of reports by Nine Entertainment Co’s newspapers and 60 Minutes, which raised questions about Crown’s use of junket operators.

Casinos engage with junket operators to lure high-rollers to their resorts with perks such as luxury travel and accommodation. The junket operator also has the role of handling the money, including collecting any debts.

The allegations made against Crown included reports that it laundered large sums of money through its Melbourne gaming venue and had connections to criminal ­organisations.

It was also alleged that Crown had a hotline to Australian consulates to fast-track visa applications for high-rollers flying in from China.

Crown’s board, led by executive chairman John ­Alexander, published an open letter last week in a full-page newspaper advertisement to argue that much of the reporting was “unbalanced and ­sensationalised”, and based on “unsubstantiated allegations” and “outright falsehoods”.

Nine rejected Crown’s claims and said it stood by the accuracy of its stories, the investigation and the hard work of its journalists.

Crown’s latest move to defend the company was in another full-page advertisement. The company reiterated many of the same points raised in its first letter.

It argued the reports on the company had failed to explain that junkets were independent business entities and an established and accepted part of the operations of international ­casinos.

Crown said it had not been pointed out that Sun­City, one of the junkets used by Crown which was alleged to have links to organised crime, was used widely by other casinos.

“SunCity, a large Macau-licensed junket, arranges customer visits not only to Crown but to other major casinos in Australia and New Zealand and at least 15 other reputable casinos globally,” Crown said in its statement.

Crown didn’t name its rivals but its domestic competitors are The Star Entertainment Group and Sky City.

All three companies suffered share price falls on the Australian market yesterday, which was down across the board due to the US-China trade wars.

Crown was 2.56 per cent lower at $11.40, The Star was down 2.3 per cent at $3.73, while Sky City was 2.8 per cent lower at $3.70.

Crown also highlighted in its latest rebuttal that Nine had wrongly inferred a new investigation into organised crime in Australian casinos had been launched by the Australian Criminal Intelligence Commission on the back of the Crown allegations.

ACIC has said its “Targeting Criminal Wealth Special Investigation”

was not new and was a long-standing ACIC board-approved determination.

The allegations involving Crown and government agencies have been referred by Attorney-General Christian Porter to the Australian Commission for Law Enforcement Integrity.