(Adds recent poker machine-fixing allegations, shares)
Oct 26 (Reuters) - Australia's Crown Resorts Ltd CWN.AX said on Thursday that VIP turnover at domestic casinos had tumbled 17 percent in the current financial year - a slide that comes in the wake of a major setback which has discouraged wealthy Chinese punters.
In 2016, more than a dozen Crown staff were jailed in China for marketing casino holidays abroad, in violation of the country's strict anti-gambling laws.
Although VIP turnover fell, the slide was not as bad as expected, it said, adding that Australian main floor gaming revenue, which excludes VIP turnover, was slightly up in the July 1 to Oct. 22 period.
"Crown Melbourne's VIP program play turnover exceeded expectations, which is encouraging given that most of the prior corresponding period preceded the detention of Crown's staff in China," Executive Chairman John Alexander said in prepared remarks for the company's annual general meeting.
In the last financial year, turnover from wealthy VIP gamblers accounted for 17 percent of Crown's total gaming revenue, down from 27 percent the previous year. week, Crown was served with a fresh headache when a lawmaker tabled a video of whistleblowers in parliament that accused the Melbourne-based company of tampering with poker machines. reiterated its rejections of the allegations on Thursday.
The allegations prompted gambling authorities in the state of Victoria, where its flagship casino is located, to say they would launch an investigation.
Shares of the company, half-owned by billionaire James Packer, were flat in morning trade compared with a 0.2 percent decline for the broader index. .AXJO .