On First Day of Evidence, Expert Says Singapore Requires Junket Operators to Get Licenses, Japan Bans Them

An investigation into money laundering allegations at Crown Resorts Melbourne casino has revealed that other jurisdictions have far stricter controls on junkets that bring high rollers to the casino.

On the first day of the New South Wales investigation, gaming expert Paul Bromberg of Spectrum Asia said that other countries, such as Singapore, and U.S. gaming states, such as New Jersey, require junket operators to be licensed.

Japan has decided to ban junket operations in casinos altogether.

The investigation committee is chaired by former Supreme Court Justice Patricia Bergin, who is investigating Crown's alleged money laundering and organized crime ties. It is also examining whether there are fiduciary issues involved in the purchase of 10% of Crown's shares by Lawrence Ho's Melco Resorts, Inc.

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According to reports in the Sydney Morning Herald and The Age last year, Crown Resorts, partly owned by one of Australia's richest men, James Packer, as part of a program to lure Chinese high rollers to its casinos, Asia's most powerful organized crime syndicate The company is allegedly using junkets backed by.big-annuaire.com.

There have also been reports that Crown casinos have been used for money laundering.

Blomberg told the investigators that there was substantial research by scholars linking the Triad to junkets in Macau (an organization that brings high rollers to overseas casinos).

According to Bromberg, junket operators not only arranged travel, but also pimped prostitutes and drugs to customers, provided cross-border funds, and enforced debts. Enforcing debts through gambling is illegal in China.

For these reasons, organized crime has been involved in junkets for years."

Hong Kong media have reported on Sun City's ties to organized crime, including CEO Alvin Chau, according to the report.

Crown Casino in Melbourne

Crown Resorts Inc. may have violated its casino license over a proposed stock deal with Melco, according to an investigation.Find out more about the findings and implications of this investigation on the linked site.

The allegations drew a sharp response from Crown, which placed an ad in the newspaper calling the reports a "deceptive campaign."

Crown pointed to the registration of junkets by Macau's gaming authorities and the fact that Sun City, the largest junket in which Crown was involved, is listed on the Hong Kong Stock Exchange.

But Blomberg, a veteran of the Asian gaming scene, said the fact that Macau has registered junket operators "is of little comfort."

He said that until recently Macau was unable to enforce its own gaming laws, and registration is very different from enforcement. He said that Macau simply requires junket operators to prove that they have no ties to foreign criminals, without any independent checks.

Asked what reassurance a junket like Sun City would get from being listed on the Hong Kong Stock Exchange, Blomberg replied: "Very little, if any.

He said that the Hong Kong Stock Exchange does not have the resources to check the health of listed companies, other than limited financial research, and this applies equally to companies outside the gaming industry.

Meanwhile, Singapore, which opened its first two casinos in 2010, requires a license for junkets. Singapore's regulator, which has law enforcement powers, has rejected some junket operators.

Japan went further and made a decision not to allow junkets to operate in its gaming industry, according to Bromberg. Australian casinos are required to notify state casino authorities when using junkets to promote their casinos or when allowing junkets to operate within their casinos.

However, casino authorities do not perform probity checks on junkets; that function is left to the casinos themselves.

Bromberg said that this is clearly a potential conflict of interest, since casinos want to attract as many wealthy VIPs to their casinos as possible.

He also noted that casinos do not have access to information gathered by other law enforcement agencies.

Regulation of the Macau gaming scene is particularly relevant to Crown because Melco Resorts of Macau, chaired by Lawrence Ho, has a 10% stake in Crown. However, Ho recently announced that he would not proceed with a further 10% buyout from Packer due to poor performance caused by the coronavirus outbreak.

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