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China – Lawrence Ho criticises Crown’s approach to player acquisition

By - 31 May 2017

Melco Resorts CEO Lawrence Ho has criticised former Macau partner Crown Resorts for not being ‘discrete’ in its marketing to VIP customers in mainland China.

Crown’s stance led to the arrest of 18 members of staff in China and sent shockwaves through the industry in Asia.

Taking to the Financial Times, Mr Ho said Crown had failed to be ‘discrete’ in its promotional activities in mainland China accusing them of ‘running around offering credit’ and ‘talking about collection.’ He said their actions made the Chinese authorities feel like Melco’s once Joint Venture Partner was ‘deliberately spitting in our faces.’

His comments were later attributed to the industry as a whole rather than just ‘singling out Crown’ but they have been echoed by junket operators who claimed Crown was ‘too aggressive’ in its bid to attract customers and its attempts to cut out the junkets, seen as middle men in attracting VIP players.
Crown still has 14 members of staff in prison in China waiting to be prosecuted. It has since sold off its entire shareholding in Melco Crown, which Melco has now rebranded to Melco Resorts and Entertainment.

One source claimed that Chinese players have since associated the Crown brand with being unlucky which could explain Crown’s swift exit from the market although Crown has stressed that it simply wants to concentrate on its casinos in its home market of Australia.

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