Rival’s arrests in Macau likely to affect Sky City

The health and safety of Chinese contractors working for the NZX and ASX- listed giant SkyCity Entertainment Group i s of concern to the Auckland- headquartered company, which says recent arrests in Macau of a rival’s employees are “likely to be adverse” to its business in the short to medium term.

At yesterday’s annual meeting, the issue was raised following the arrest of Crown Resorts executives by Chinese authorities in Macau last week.

“SkyCity i s confident that its contractors comply with all relevant laws and regulations in China,” the company said. Australian media said the arrests were not confirmed but they come amid a crackdown on corruption and money laundering.

While not directly linked to Crown, SkyCity often emphasises its VIP market, with many high rollers coming from China, where gambling, aside from Macau, is illegal.

SkyCity’s update yesterday said none of its contractors had been questioned or detained as part of Chinese investigations.

“Financial impact of this situation remains highly uncertain but is likely to be adverse over the short- to medium- term,” the statement said.