Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  Crown Resorts Ltd    CWN   AU000000CWN6

CROWN RESORTS LTD (CWN)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

Crown Resorts : China Court Sentences 16 Crown Resorts Employees to Prison -- 2nd Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/26/2017 | 01:51pm CEST
By Wayne Ma in Shanghai and Mike Cherney in Sydney 

A senior executive of Australian casino company Crown Resorts Ltd. pleaded guilty Monday to gambling crimes in China and was sentenced to 10 months in prison, capping an episode that has chilled efforts by casinos to lure Chinese high-rollers.

Jason O'Connor, Crown's head of international VIP operations, was charged along with 18 other current and former Crown employees who also pleaded guilty during a three-hour trial before Criminal Court No. 1 in Shanghai's Baoshan district.

In addition to Mr. O'Connor, four others received 10-month sentences and 11 were given nine-month sentences, with credit for time served since mid-October, Crown said. Three administrative employees who have been free on bail weren't sentenced.

The arrests followed an investigation that tracked 69 big-spending Chinese gamblers from 2015 to 2016 as they were coaxed to Crown's Australia resorts with free airline tickets, visas and hotel accommodations and gambled tens of millions of Australian dollars, authorities said in court Monday, according to a person present. Crown has casinos in Melbourne and Perth.

Casino gambling is illegal in China, except in the special administrative region of Macau. Foreign casinos aren't allowed to advertise gambling, but they can promote their destinations more broadly, for example promoting beaches and shopping.

The defendants could have been sentenced for up to three years in prison, according to lawyers following the case, making Monday's terms seem relatively light--especially in comparison with higher-profile cases involving foreign and Chinese employees of GlaxoSmithKline PLC and Rio Tinto PLC. Australian Rio Tinto executive Stern Hu, for example, was sentenced to 10 years in prison in China for accepting bribes and stealing commercial secrets.

Crown's decision to sell its stake in a Macau casino operator after the detentions likely helped influence the lenient sentences, said Hans Hendrischke, professor of Chinese business and management at the University of Sydney Business School.

Crown was "sending a very strong signal that they take this seriously and they want this to be resolved as soon and as smoothly as possible," Mr. Hendrischke said. "This is very much the way things operate in China, and it would confirm that if you respond adequately as Crown has done, you can get an adequate return from the Chinese side."

Nicolas Groffman, an attorney at Harrison Clark Rickerbys, noted that other gambling cases have included charges of embezzlement or bribery, which didn't happen here.

"Maybe there isn't motivation anymore to go after them hard because they've got other big fish to fry," Mr. Groffman said. "There was no need to hang these people and give them anything beyond the normal sentences."

In a statement, Crown said the 16 employees who were sentenced to jail terms were also fined the equivalent of 1.7 million Australian dollars ($1.3 million) in total. The company said it would pay the fines on their behalf.

Crown shares closed up 0.3% Monday at A$12.79 on the Australian stock exchange.

The case has been closely watched by the gambling industry. Crown and competitors in Australia and New Zealand reported declines in their VIP businesses after the arrests.

Macau, in contrast, is on a 10-month revenue winning streak that analysts say has been partly driven by high-rollers who have returned there from other gambling meccas.

Crown has said visitors from mainland China comprised less than half of the company's international VIP revenue, and that mainland Chinese VIPs accounted for about 12% of the company's A$3.6 billion in total revenue for the 2016 fiscal year.

But in the six months ending Dec. 31, Crown's most recent financial result, the company said its overall VIP program revenue in Australia fell 45%.

Most of the Crown employees detained held sales and marketing positions targeting different regions of China, according to the person present in the court. The three employees who weren't sentenced or fined were administrative workers, this person said. Aside from the three Australians, one detainee was Malaysian and the others were Chinese, people familiar with the case have said.

Crown said 17 are currently employed and two are former staff.

The trial was closed to the public and no charging documents were released Monday, although an official accounting of the charges and sentences is likely to be released later, the person at the court said.

Crown and other casino operators have long gone to extraordinary lengths to court wealthy Chinese gamblers to their baccarat tables and other games of chance. The blandishments typically include free food and drink, Chinese-speaking service staff and complimentary hotel suites, people in the industry say.

For the biggest spenders, a chartered jet flight from China to Australia wasn't uncommon, these people say.

Crown, controlled by billionaire James Packer, has also pulled out of a casino project in Las Vegas, signaling a curtailment in its global ambitions. The company is building a casino and resort complex on Sydney's waterfront and developing a new hotel at its main casino in Melbourne.

Junya Qian in Shanghai contributed to this article.

Write to Wayne Ma at [email protected] and Mike Cherney at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CROWN RESORTS LTD
06/18CROWN RESORTS : Cancellation of Shares - Buy-Back - ASIC Form 484
PU
06/15CROWN RESORTS : Update in Relation to Buy-back of Subordinated Notes
PU
06/14CROWN RESORTS : Interest Payment - CWNHB
PU
06/14CROWN RESORTS : Interest Payment - CWNHA
PU
06/08CROWN RESORTS : Update in Relation to Buy-back of Subordinated Notes
PU
06/06CROWN RESORTS : Daily Share Buy-Back Notice - Appendix 3E
PU
06/04CROWN RESORTS : Daily Share Buy-Back Notice - Appendix 3E
PU
06/01CROWN RESORTS : Update in Relation to Buy-back of Subordinated Notes
PU
06/01CROWN RESORTS : Daily Share Buy-Back Notice - Appendix 3E
PU
05/25CROWN RESORTS : Update in Relation to Buy-back of Subordinated Notes
PU
More news
News from SeekingAlpha
02/22Crown Resorts Ltd. ADR 2018 Q2 - Results - Earnings Call Slides 
01/30Wynn Resorts closes on Vegas Strip land sale 
2017Wynn Resorts strikes land deal on Las Vegas Strip 
2017Paddy Power Betfair also circling CrownBet 
2017William Hill in merger talks with CrownBet 
Financials ( AUD)
Sales 2018 3 433 M
EBIT 2018 565 M
Net income 2018 452 M
Debt 2018 416 M
Yield 2018 4,40%
P/E ratio 2018 22,30
P/E ratio 2019 21,74
EV / Sales 2018 2,86x
EV / Sales 2019 2,91x
Capitalization 9 391 M
Chart CROWN RESORTS LTD
Duration : Period :
Crown Resorts Ltd Technical Analysis Chart | CWN | AU000000CWN6 | 4-Traders
Technical analysis trends CROWN RESORTS LTD
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 9
Average target price 13,7  AUD
Spread / Average Target 0,36%
EPS Revisions
Managers
NameTitle
John Henry Alexander Executive Chairman & Chief Executive Officer
Kennneth M. Barton Chief Financial Officer
Geoffrey James Dixon Independent Non-Executive Director
Michael Roy Johnston Non-Independent Non-Executive Director
John Stephen Horvath Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
CROWN RESORTS LTD4.76%6 907
SANDS CHINA LTD.9.33%45 192
GALAXY ENTERTAINMENT GROUP LIMITED3.36%34 981
WYNN MACAU LTD10.83%17 912
MELCO RESORTS & ENTERTAINMENT LTD(ADR)3.82%14 410
ARISTOCRAT LEISURE LIMITED29.07%14 366