Want more stock market analysis from this author? You can see where the confusion lies. Mr Krien questioned whether the Chinese government was making an example of Crown, and added it would be "surprising" if Crown was doing anything different to other casinos with marketing staff in China.
Sacha Krien, a senior media and gaming analyst with the global equity broker CLSA, told Guardian Australia that it was unclear what prompted the arrests, because Crown had always differentiated its marketing activities from the South Korean operators that got into trouble last year.
Casino operators such as Crown from around the world have staff stationed in China to promote their businesses to Chinese gamblers in what is an intensely competitive market. It appears that the Chinese government has decided to make an example of Crown, crown casino shares prices is the only Australian casino company with offices in China. Shares in other casino operators in the region fell in response to the arrests Crown's largest Australian competitor, Crown casino shares prices Star, did not escape the fallout - its share price fell more than 5 per cent but closed down 3.
It is not uncommon for casinos to send their staff to China, where gambling is mostly illegal, in order to lure them to casinos overseas. It's dangerous and risky to open offices, organize parties, send business cards and even collect gambling debts in mainland China. Mr Krien said the arrests of the 18 Crown staff "could impact the ability of Australian casinos to collect outstanding debts", but also noted it was unclear whether the crackdown would extend to the junket operators who bring players to Australia, as opposed to casino staff, but that it was a possibility.
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Stock analysts are scrambling to figure out the ramifications of the Chinese crackdown on the Australian casino operator's earnings, with initial estimates suggesting about 5 per cent could be wiped from its profit. Bloomberg via Getty Images Shares in Crown have plunged following the news that 18 of its staff have been detained in China for alleged gambling crimes.
Guardian Australia has contacted Star for comment.
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Bloomberg Advertisement The Chinese foreign ministry confirmed over the weekend the Australians detained on suspicion of committing "gambling crimes", without specifying how many. Hong Kong-listed Sands China fell as much as 5.
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The Chinese president, Xi Jinping, announced a major crackdown on advertising, including from casinos in Macau, that targeted mainland Chinese. Bloomberg South Korea's largest operator of casinos for foreigners Paradise fell as much as 0.
Share via Email This article is over 1 year old Casino groups have withdrawn their staff from China following the arrest of 17 Crown Resorts employees.
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In June last year, at least 13 South Korean casino employees who worked for the country's two big casino operators were arrested by Chinese authorities, including workers at Chinese travel agencies. Click to get this free report.
Guardian Australia understands other casino groups have withdrawn their staff from China following the Crown arrests. With battery prices plummeting and charging stations set to multiply, one company stands out as the 1 stock to buy according to Zacks research. Casinos spend up big flying the VIPs from Asia on corporate jets, entertaining them while they gamble and also often extend them millions of crown casino shares prices in credit.
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Supplied "When the government's tone is clear, casinos and junkets need to work smarter in the market. Soon electric vehicles EVs may be cheaper than gas guzzlers. The raids were conducted at a time when Crown's crown casino shares prices international VIP manager, Jason O'Connor, was in town in a move that looks designed to attract maximum attention and cause maximum damage.
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They have had huge success in this endeavour over the past few years as many of the big international gamblers have shunned Macau for fear of being caught in that crackdown. And while some investors may say that means GDEN is trading at a premium, all signs point to continued growth for this stock.
Much like petroleum years ago, lithium power may soon shake the world, creating millionaires and reshaping crown casino shares prices. Paradise Co said its six employees who had been arrested had now been released, including two on Monday.
As of Monday afternoon shares were down 9. Monday's Crown share price plunge has cut billionaire James Packer's paper wealth by about half a billion dollars. CSLA analyst Sacha Krien said Crown's reliance on China is higher than its competitors and in particular the company was to focus on luring Chinese gamblers and guests to its Barangaroo VIP casino and hotel project under construction in Sydney.
This is great news for Melco Crown, which has steadily risen all year. While gambling advertising and collecting gaming debts are illegal in China, they are "established practices" carried out by marketing teams, he said. The share prices of both Grand Korea Leisure and Paradise Co, which had pursued Chinese gamblers in great volume in recent years, plunged at the time and are both still trading at more than 40 per cent below their levels before the arrests.
View all announcements "This is a clearer signal to all casino operators and junkets in the region, that the Chinese government doesn't like gambling and will continue the crackdown on the industry and capital outflow," said Tony Tong, founder of Hong Kong-based risk management consulting firm Pacific Financial Services Ltd.
With casino stocks this hot right now, investors are not going to want to miss out.
It said the case remained under investigation.