A witness told the West Australia Royal Commission that employees of Crown Resorts had been warned to hustle up business in China in what was described as a “low-key” way before they got arrested in 2016. The witness also rejected suggestions there were some warning signs for the upcoming arrests at the time.
Earlier today, the former CEO of the casino company’s Australian Resorts, Barry Felstead, testified and faced questioning regarding the arrests of 19 Crown Resorts’ employees that resulted in 16 casino workers going to jail.
The investigation and the establishment of a separate Royal Commission in the state of Victoria were started as a result of the damning findings of the NSW Commissioner’s inquiry. According to the findings unveiled a few months ago, Crown Resorts facilitated money laundering by partnering with so-called junket operators that attract foreign (mostly Chinese) high-roller customers at its casino venues in Melbourne and Perth.
The investigation faced by the Australian gambling giant in the state of New South Wales eventually resulted in Crown Resorts getting stripped of its Barangaroo licence. Commissioner Bergin found that the company was unfit to hold its gaming licence for the AU$2.2-billion gambling property in Sydney.
Executives Were Aware of the Risks Associated with Chinese Gambling Laws
Today, the counsel assisting the Royal Commission in Sydney – Michael Feutrill – asked Mr Felstead whether or not he was familiar with the legal system in China, where all forms of gambling are currently illegal. In addition, laws could be inconsistently enforced with the risk of the country authorities starting some arbitrary action.
Mr Felstead revealed he was aware of the specifics of the gambling legislation in China and also agreed it made the country a riskier destination for Crown employees to work at, especially in comparison to Australia. He, however, said that Mr Chen was urging the company’s employees to make more sales. Mr Felstead also confirmed he was aware of the risks associated with possible arrests of Crown Resorts’ staff in the foreign country in June 2015.
He, however, shared his belief that he took adequate measures to make sure that the operations of Crown Resorts in China were legal and were not putting any of the company’s staff at risk. Mr Felstead also noted that doing business in China always bore an element of risk, especially when it comes to particular timeframes, but he had been happy with the measures Crown Resorts had in place to protect its workers there.
At the time, the Australian gambling giant received regular advice from an advisory company and a large law firm in China. Many other global casinos operating employees were engaged in China at the same period, Mr Felstead noted. When asked about the measures taken to lessen the risks to the company’s staff, he shared that Crown Resorts had informed its employees to keep a low-key approach. He also admitted that the company’s board should have been addressed in terms of the risks.
- Author
Olivia Cole
