Crown Resorts’ troubles with money laundering have not gone unnoticed by other gaming operators in the Australasian region. New Zealand’s SkyCity Entertainment announced last week that it will no longer work with junkets, organizations that arrange trips for high rollers, particularly those from China, and specialize in setting up VIP credit lines.
A recent probe of Crown casinos in Western Australia and Victoria, where hundreds of millions of dollars were reportedly laundered, lost Crown its license to operate a new VIP casino at its property in Sydney.
In a statement to the Australian Stock Exchange, SkyCity said it will deal directly with international patrons after appropriate “know your customer” and customer due diligence requirements are satisfied. The group said it will consult with regulators in both New Zealand and South Australia about its new business model, reported Asia Gaming Brief.
SkyCity joins both Star Entertainment and Crown in opting out of junket programs, at least for now. Singapore law forbids casinos to deal with junkets, and recent crackdowns on money leaving China could make junkets obsolete in the near future.
