After the release of separate reports from local media outlets of the company's possible involvement in organized crime, share prices of Australia's Crown Resorts dropped by as much as 3.2 percent on Monday. Following the allegations against it, the casino operator could be facing an investigation by Australia's parliament.
Crown had been accused by the reports of participating in a money-laundering scheme orchestrated by an Asian crime syndicate. Apart from the news reports, a television program was also aired over the weekend, seemingly revealing how the Casino held junket events to bring in high-rolling Chinese gamblers linked to drug trafficking to its casinos in Australia.
The reports also revealed corruption within the company, involving the bribing of immigration officials to speed up clearances for its big overseas customers. It was also alleged that at least one Asian crime syndicate was laundering money through Crown's casinos in Australia.
In response to the reports, Crown released a statement revealing that it had a robust system for vetting junket operators and that it continuously monitors the activities within its casinos.
The company, which operates casinos in Melbourne, Perth, Victoria, and Sydney, further elaborated that it has various programs in place to fight money laundering and terrorist financing within its premises.
The company also outright denied that it knowingly exposed its staff to China's crackdown on illegal activities. In 2017, China convicted 19 current and former employees of the company of illegally promoting gambling to Chinese gamblers.
Following the release of the news articles and the television program, Crown's share prices fell by as much as 3.2 percent on Monday, the biggest fall of the stock in more than three months. Crown currently has a standing relationship with various casino operators in China.
Macau casino operator Melco Resorts and Entertainment is one of the company's largest individual shareholders, owning a 19.99 percent stake in the company. Melco acquired the stake in May in a deal estimated to be worth $1.2 billion.
Gambling critics along with some politicians have called on the Australian government to step in and launch an all-out investigation into Crown's activities. The call could lead to public hearings to investigate the allegations, likely resulting in the further drop of the company's shares.
The Victorian Commission for Gambling and Liquor Regulation mentioned that it is actively looking into the publicized accusations and the activities of the company's international sales team in China. The Gaming and Wagering Commission of Western Australia has also pledged to launch an investigation into the matter.
