Junkets probe worries SkyCity boss

Concerns have been raised by the Chief Executive of  SkyCity Entertainment Group Ltd that revenue from VIP gamblers may be curbed by official investigators. They are currently looking into connections between the Australian gaming industry and Chinese criminal organisations. The chief executive, Graeme Stephens, raised his concerns with the local media.  

At the moment, SkiyCity Entertainment is based in New Zealand and runs three casinos there along with one in Australia. Most of its foreign patrons are Chinese VIPs, who trips are often arranged by junket operators. 

A report on Wednesday in the online edition of the Sydney Morning Herald quotes Mr Stephens as saying: “We’re not quite sure what’s going to happen in the world of junkets… it’s difficult to ignore the media and related responses in the case of Crown over the last few weeks.” 

Last week, the New South Wales Independent Liquor and Gaming Authority announced that it was launching an investigation into the “change in state affairs” of Australian casino operator Casino Resorts Ltd. In addition, it was also looking into “various matters raised in recent media reports”, pointing towards articles that were recently published in the Nine Network, the Sydney Morning Herald, and the Melbourne Age relating the gaming firm.  

The reports, which have been carried in the Australian media since July, alleged that Crown Resorts’ Australian casino business had been a conduit for money laundering and Chinese organised crime activities via high-roller gambling.  

However, Crown Resorts denied the allegations and has offered to fully cooperate in any inquiry.  

Crown Resorts – which has traditionally been strong in high-stakes play – runs a gaming resort in Melbourne, Victoria; one in Perth, Western Australia; and is developing a third at Barangaroo in Sydney, New South Wales. 

The Sydney Morning Herald quotes Mr Stephens as telling investors: “We’re not sure what that means for us, so that’s added another layer of uncertainty in a world which is inherently difficult to predict.” 

The report quotes the finance officer for SkyCity as having said that the volatility of the VIP gaming market makes tapping foreign gamblers the riskiest part of the business his company does.

SkyCity Entertainment reported on Wednesday that its annual net profit fell to NZD144.6 million (US$93.13 million) in its financial year ended last June 30, or 14.7 percent less than the year before.

Annual revenue fell by 2.5 percent to NZD905.4 million. The company declared a final dividend of NZD0.10 a share, payable on September 13 to shareholders on record on August 30.