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UPDATE 1-Star Entertainment CEO cancels Macau trip after Crown arrests in China

Published 24/10/2016, 08:45 pm
© Reuters.  UPDATE 1-Star Entertainment CEO cancels Macau trip after Crown arrests in China
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* CEO cancelled to address investor questions -spokesman

* Crown detainees being treated appropriately -foreign minister (Adds Australian foreign minister comment in fourth paragraph)

By Byron Kaye

SYDNEY, Oct 24 (Reuters) - Australia's second-largest casino company, Star Entertainment Group Ltd SGR.AX , said its CEO cancelled a trip to Hong Kong and Macau last week after employees of peer Crown Resorts Ltd CWN.AX were held in China for suspected "gambling crimes".

Chief Executive Matt Bekier decided to stay in Australia to address questions from major investors about the impact of the detainments on Star's business, a Star spokesman said, adding that the cancellation was not due to security concerns and that the visit would be rescheduled.

The detainment of 18 Crown staff, three of whom are Australian nationals including its head of international VIP gambling, has been widely seen as a crackdown on gambling and has sparked major concern about the impact on local casinos which rely on wealthy Chinese gamblers.

Australian Foreign Minister Julie Bishop told Sky News television she has been informed that the detained employees were being treated "appropriately" by Chinese authorities.

Crown said on Thursday that no charges had been laid against its staff. in Crown have tumbled 18 percent since last week in the wake of the detainments, while shares in Star Entertainment are down 12 percent.

New Zealand casino company Skycity Entertainment Group Ltd SKC.NZ has seen its stock plunge 19 percent after saying that its business was likely to be adversely affected by the arrests. is due to speak to shareholders at the Star Entertainment's annual general meeting on Friday. He makes quarterly visits to Hong Kong to see the company's joint venture partners, Chow Tai Fook Jewellery Group Ltd 1929.HK and Far East Consortium International Ltd 0035.HK , the spokesman said.

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