Chinese crackdown likely to have adverse effect: SkyCity

New Zealand casino operator SkyCity Entertainment Group says the recent Crown employee arrests are “likely to be adverse” to its business in the short and medium term, local media reports.

Shares in SkyCity fell nearly 14 percent amid fears of a crackdown on VIP gaming by Chinese authorities, according to Reuters.

SkyCity, which operates six casinos across Australia and New Zealand said it is “closely monitoring recent events concerning Crown employees” being detained in China, but assured that none of its contractors have been questioned or detained.

Interim chief executive John Mortensen said while the accuracy of information coming out of China about the Crown arrests was “at best speculative”, the arrests would have an impact.

“It is clear that these changes in the immediate future will impact our international business from China,” he said.

“The outlook is relatively uncertain and we don’t want to speculate on what the implications could be as we go forward for the next few months,” he added.

Last fiscal year, roughly 50 per cent of group turnover was contributed by Chinese customers.