Shanghai Court Convicts 19 for Reeling In High Rollers Overseas

A Shanghai District Court has convicted 19 current and former employees of Crown Resorts Ltd. on gambling-related charges.

Jason O’Connor, the head of Crown’s international VIP operations, was sentenced to 10 months of prison with credit for time served since O’Connor and other Crown employees were detained on Oct. 14, according to a statement by the Australian casino operator on Monday.

The Crown employees were found guilty of breaking a Chinese law against organizing gambling parties or profiting from gambling.

Sixteen employees, including O’Connor, were fined a total of 8.62 million yuan ($1.26 million) and given prison terms of nine to 10 months. The other three were neither fined nor sentenced to time in prison.

The verdict marks the end of a months-long crackdown by Chinese authorities on Crown’s wooing of Chinese high rollers. Gambling and promotion of gambling are illegal on the Chinese mainland, but many wealthy Chinese head to nearby Macau and other locations in the region where gambling is legal. The verdict doesn’t make clear where the gambling parties or profiting took place.

Crown began selling off its stakes in Macau joint venture Melco Crown Entertainment last year, and pulled out of Macau entirely in May when it sold its remaining 11.2% stake to partner Melco Resorts & Entertainment Ltd.

Beijing has been taking measures to curb gambling-related capital flight, including cutting by half in December the daily withdrawal limit for UnionPay card users in Macau.

Crown is paying all 16 fines and said it “remains respectful of the sovereign jurisdiction of the People’s Republic of China.”

Contact reporter Teng Jing Xuan (jingxuanteng@caixin.com)