But the accusations against Crown drew the industrys attention and were closely watched for a sense of how other operators should run their businesses. It is unusual for a high-ranking foreign executive to be prosecuted in China, but the law mandates a maximum sentence of as many as three years for organizing gambling sessions or trying to profit from the business. <\/p>\n
The uncertainty was stifling for a lot of casino operators because they didnt exactly know how this was going to pan out and what the exact objections were because not much was made public, said Sudhir Kal, the founder of GamePlan Consultants, a gambling consultancy based in Australia that has advised Crown in the past. <\/p>\n
Most operators will also learn that, every now and then, the government does become very serious about implementing the laws in the strictest sense of the word, and therefore they will be a lot more subtle in terms of promoting their properties to the mainland Chinese market, he said. <\/p>\n
The detentions followed a crackdown on South Korean casino chains in 2015, when the authorities arrested more than a dozen employees accused of luring Chinese tourists with free accommodations and prostitutes. They also come on the heels of President Xi Jinpings crackdown on corruption, in which he warned against ostentatious displays of wealth, and at a time when the government is struggling to stem capital flight. <\/p>\n
Australia has watched the case closely, and its prime minister, Malcolm Turnbull, has expressed concern. A spokeswoman for Australias Department of Foreign Affairs and Trade said that consular officials would continue to aid the Australians and their families until they were released. <\/p>\n
The detentions have also caught the attention of other foreign companies operating in China, where fears of increased government scrutiny are growing. Still, the sentences were lighter than the penalties meted out to some others that have come under the cross hairs of the Chinese government. In 2010, a senior executive at Rio Tinto, a mining giant, was sentenced to 10 years in prison in a case involving bribery and theft of commercial secrets. <\/p>\n
Chen Zhao, deputy director of Fudan Universitys China Center for Economic Studies in Shanghai, said he did not believe the Crown case meant that the government was putting foreign companies in its sights. I believe that the Chinese government itself is very welcoming of all kinds of legitimate and reasonable investment, so I think this action isnt targeting a specific company, foreign investor or country, he said. <\/p>\n
Crown said 16 of the 19 defendants were fined a total of $1.3 million, which the company paid. <\/p>\n
It is unclear what the case would mean for Crowns growth prospects in China. On its website, the company lists Hong Kong, another special administrative region governed by its own laws, as its only international representative office. In May, Crown sold its remaining stake in the Macau casino operator Melco Resorts & Entertainment for about $1.2 billion. <\/p>\n
Although Macau, the worlds largest gambling market, has been hurt by the campaign against graft, it has rebounded in recent months as new resorts have opened. <\/p>\n
Jacqueline Williams contributed reporting from Sydney, Australia. Zhang Tiantian contributed research from Beijing. <\/p>\n
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China Jails Workers From Crown Resorts of Australia in Message to Casinos - New York Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" But the accusations against Crown drew the industrys attention and were closely watched for a sense of how other operators should run their businesses. It is unusual for a high-ranking foreign executive to be prosecuted in China, but the law mandates a maximum sentence of as many as three years for organizing gambling sessions or trying to profit from the business Continue reading