China detentions
Packer concerned about casino firm’s employees
Casino company Sky City Entertainment says it is monitoring the situation in China after 18 employees at its competitor, Crown Resorts, were detained by authorities there last week.
“SkyCity does not have any staff in China, but we do use independent contractors there,” a SkyCity spokesperson said in a written response to a query from the Herald.
“We are very confident these contractors comply with all relevant laws and regulations,” the spokesperson said. “We have been in contact with these contractors and none have been detained or are involved in this situation.”
“Like other Australasian casino operators, SkyCity is continuing to monitor developments closely.”
Crown Resorts shares in Australia recovered some ground yesterday closing up 1.7 per cent at A$11.34, having dropped 13.9 per cent on Monday. SkyCity’s share price fell 19c on Monday and closed down a further 6c yesterday at $4.39.
The Crown employees are being held on suspicion of alleged gambling
. . . none have been detained or are involved in this situation. SkyCity spokesperson
crimes, including the direct marketing of casinos to large groups in China, according to media reports.
Billionaire James Packer, who owns just under half of Crown, said he was “deeply concerned” for the welfare of the 18 employees.
The detainees include Crown’s executive vice-president of VIP international operations, Jason O’Connor.
Deutsche Bank analysts Mark Wilson and Anthony El-Khoury upgraded their rating on Crown from Hold to Buy despite many investors dumping the stock.
Deutsche reduced its valuation of Crown shares by 4 per cent to A$13.75 each but said the stock was trading well below that revised valuation.
Groups of gamblers and individual high-rollers from China would be less inclined to go to Australia while investigations related to the detentions of the Crown employees were ongoing, the analysts said.