Macau is a popular destination for businessmen and women working in the casino game industry. The city is bustling with gaming activities and many operators around the world have vested interests in the area. But after the recent arrests of Crown Resorts employees in China, industry-related individuals may begin to avoid the area. According to Reuters, Matt Becker, CEO of Star Entertainment Group, canceled a trip to Macau and Hong Kong last week due to an arrest.
Becker was due to visit both regions but decided against it after his arrest and will remain in Australia to focus on questions from key investors in the company, Australia's second-largest casino gaming company, and how detentions will affect its business. A spokesperson for the star said the cancellation was not due to security concerns and that the visit would be rescheduled. The CEO will speak to shareholders at the company's annual general meeting this Friday. Becker visits Hong Kong quarterly to see the company's joint venture partners, including Far East Consortium International and Chow Thai Phuk Jewelry Group.
The recent detention of 18 Crown Resorts employees, seen as a crackdown on gambling, has raised concerns in the Australian gaming industry about how it will affect local casinos. Australian casinos rely on China's high rollers to enjoy gaming options in their own country. Three of the detained individuals are from Australia. As of Thursday, Crown reported no charges had been filed against its employees. Australian Foreign Minister Julie Bishop told Sky News that she had been told staff in custody were being treated appropriately.
Since last week, Crown Resorts shares have fallen 18% and Star Entertainment has fallen 12%. Sky City Entertainment Group is a New Zealand casino company that reported likely to be adversely affected by the arrests, with its shares down 19%.