SkyCity Entertainment Group revealed that it decided to cease its collaboration with so-called junket operators that attract high-roller players to the company’s casinos in Australia after local regulatory bodies have shared their concerns about alleged links of junkets to organised crime at another casino giant, Crown Resorts.
As part of its decision, SkyCity is changing its operating model. The gambling operator further revealed that it will deal directly with its international business customers. The company’s board of directors shared that SkyCity Entertainment is aimed at first satisfying the customer due diligence and “know your customer” requirements.
As Casino Guardian previously reported that the use of junket operators faced harsh criticism after in February the investigation of the New South Wales’ Commissioner found that the Australian gambling giant Crown Resorts was not suitable to keep its operating licence for its new Barangaroo new casino facility. Commissioner Patricia Bergin found various issues associated with money laundering violations, poor governance of the company and collaboration with junket operators associated with organised crime, with these findings raising serious concerns about the operations of Crown Resorts in its Melbourne and Perth casino venues.
Back in February, SkyCity Entertainment revealed that it had started a strategic review of its international business unit as part of its interim results announcement for the six-month period that ended in December 2020. Now, the review has been finalised and the gambling company’s board has made a decision to permanently stop working with its junket partners. The decision has an immediate effect.
SkyCity’s Decision to Cut Out Junkets Comes After Criticism Faced by Crown Resorts
Currently, SkyCity Entertainment operates casino venues in Auckland, Queenstown and Hamilton in New Zealand, and in Adelaide in Australia. The company said it will take the matter to consultation with gambling regulatory authorities both in New Zealand and in South Australia in relation to its decision to revise its current operating model.
Although SkyCity has not provided any reason for its decision to fully end its previous arrangements with junket operators, its decision has probably been affected by the massive ongoing inquiries in Crown Resorts. As mentioned above, the Australian casino company that has been the largest and most prominent casino operator in the country has faced allegations of money laundering, along with other problematic issues in its Australian casinos. And while the Perth and Melbourne venues of the company are still subjects to investigations, the Crown Resort’s operational licence for its new Sydney casino has been suspended by the NSW gambling watchdog at least until the company makes certain amendments in order to iron out the issues found by Commissioner Bergin.
So-called junket operators organise special tours to bring foreign countries’ affluent gamblers to local casinos. In other words, controversial junkets facilitate gambling for high-roller customers and get commission from the casino operator it brings foreign players to.
- Author
Olivia Cole
