The head of Crown Resorts Ltd's VIP International team, Jason O'Connor, is believed to be one of 18 Crown employees being questioned by Chinese authorities, the company said in a statement to the Australian Securities Exchange.
The Chinese foreign ministry said in a regular briefing that Australians have been detained in Shanghai for suspected involvement in gambling crimes, but did not provide further details.
The raids were part of an apparent crackdown on the firm's operations to lure high-worth Chinese gamblers to its Australian casinos, Fairfax said.
Casino gambling is illegal on the mainland and Chinese law prohibits agents from organising groups of more than 10 Chinese citizens to gamble abroad. The crime is punishable by up to three years' imprisonment. The industry has been known to skirt the ban by touting destination packages.
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In 2015, police arrested 13 South Korean casino managers and 34 Chinese agents for selling packages with free tours, free hotels and sexual services.
Crown declined to say why O'Connor was in China. Crown, founded by billionaire James Packer, has said in recent financial disclosures its "International VIP" business segment has surged in recent years thanks to ramped up overseas marketing.
It was not clear whether any of the staff had been charged.
Crown said it was supporting the Chinese and Australian families of the detained employees. Headquartered in Melbourne, Crown has gambling interests in Australia, Macau, Manila, the Philippines and London.
Crown shares fell 14 per cent to close today at USD 8.47, the biggest single-day decline in the company's history. Grant Govertsen, a Macau-based analyst at Union Gaming, a gambling-focused investment bank and advisory firm, said such crackdowns are common in China.
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