Earlier today, Australian billionaire James Packer revealed that he may be forced to reduce his stake in Crown Resorts in order for the company to be able to keep its operating licence. Mr Packer further said the would never return to the company’s board after facing the experience of being accused of links with criminals.
Packer, who currently owns about one-third in one of the largest Australian casino operators, also confessed that the gambling operator published false statements to conceal any possible link to so-called junket operators that bring affluent foreign gamblers, primarily from China, to the company’s casinos. Crown Resorts’ investor, however, explained that he personally had nothing to do with the risk guidelines regarding the VIP operation of the company at the time he occupied the position of executive chairman.
The revelations were made during an ongoing government inquiry that is being held to decide whether or not Crown Resorts is suitable to keep its casino operating licence, just a couple of months before the gambling company is expected to open its new Barangaroo casino in Sydney. As part of the investigation, the Independent Liquor and Gaming Authority (ILGA) heard details regarding Mr Packer’s close involvement with aforementioned junket operators, which allegedly continued even after he left his position in the company’s board in late 2015.
James Packer Further Admits Junket Operators Could Have Been Related to Criminal Organisations
James Packer appeared for a third and final day before the regulatory body to give evidence. As Casino Guardian reported, earlier this week, the Australian billionaire admitted to making threats against an unnamed businessman in 2015.
Since the arrest of Crown Resorts’ staff members in China in 2016, the casino company has been forced to forsake its offshore expansion interests, which pretty much left it with its Melbourne- and Perth-based casinos and the abovementioned Sydney casino resort that has cost it AU$2.2 billion so far. Currently, Mr Packer holds no operational role in the gambling company, after leaving the board of the firm and disposing of some of his assets in Crown Resorts.
During the hearings that are still being held by the gambling regulatory body of the state, executives played down the dependence of Crown Resorts on affluent gamblers who have been brought to its casinos by so-called junket operators. Despite that, Mr Packer agreed that the Barangaroo casino project of the gambling operator was originally intended to make a profit from an influx of VIP Chinese gamblers, as the inbound Chinese tourism sector was expected to keep its growth momentum.
According to official data, most tourists that visit Australian casinos originate from China, though their number sharply declined at the time when both countries were forced to close their borders as part of the social isolation measures aimed at preventing the further spread of the coronavirus pandemic.
- Author
Olivia Cole
