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Billionaire businessman and investor James Packer has this week topped off a decade of misfortunes with a crushing blow to what was once "the jewel in his crown."...
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Billionaire businessman and investor James Packer has this week topped off a decade of misfortunes with a crushing blow to what was once "the jewel in his crown."
Lawrence Ho, son of Macau gaming tycoon Stanley Ho, and co-chairman of Melco crown, and his co-chairman, Australian billionaire James Packer during a press conference in 2015. Picture: Ted Aljibe/AFPSource:AFP
Lawrence Ho, the Macau-based casino operator and son of the flamboyant âgodfatherâ of Asiaâs largest gaming empire, and James Packer, the billionaire Australian businessman and investor.
Bound by the âstunning returns from their Asian casinos and their shared experience of being raised by a domineering fatherâ, the men were friends, confidantes and business partners, so close they referred to each other as âbrotherâ.
During a lucrative joint venture that lasted 11 years, Mr Packerâs Crown Resorts and Mr Hoâs Melco Resorts built a casino business in Macau and Manila that earned Crown roughly $4.5 billion.
For Mr Packer, it was a stunning return of almost six times his investment. But for Mr Ho, âgetting out of working with my family and my fatherâs company was worth any priceâ, he said in an interview for Damon Kitneyâs 2018 Packer biography, The Price of Fortune.
In 2019, when Mr Hoâs Melco Resorts group signed a $1.8 billion deal to buy 20 per cent of Crown, lightning shouldâve struck twice for the duoâs Melco Crown.
Instead, the deal helped spark the inquiry that would forever tarnish Mr Packerâs credibility and could now force him to either sell his Crown stake or frantically make over his entire corporate entity.
RELATED: James Packerâs 20 years from hell
Mr Packer with Mr Ho and his wife Sharon at the opening of their City of Dreams mega-casino in Manila in February 2015. Picture: Jay Directo/AFPSource:AFP
CONNECTIONS TO FLAMBOYANT âGODFATHERâ WITH TRIAD TIES
Long before Mr Packer and Mr Ho became pals, when the NSW Government first entertained the idea of building a casino back in the 1980s, there was one man black-listed from ever having any involvement.
Stanley Ho was the flamboyant âgodfatherâ of Macau casinos, renowned for steering gaming in the autonomous Chinese region to eclipse Las Vegas and survived by the 14 children â one of them Lawrence Ho â he had fathered with four wives when he died last May.
Making his first fortune before the age of 24 smuggling goods into China while collaborating with the Japanese, Stanley was credited with transforming Macau into the worldâs biggest casino centre.
For all his success, however, Stanley was plagued by reports of his ties to members of the 14K and Sun Yee On triads â the feared Chinese organised crime syndicates â and accusations of money laundering.
âThere is no doubt that by virtue of the setups of the VIP rooms, Stanley has interacted with individuals that are members of triads,â MGM vice-president of corporate security, Kyle Edwards, stated in 2003.
In 2009, a damning assessment by New Jersey gaming authorities into his sister, Pansy Ho, reported that ânumerous governmental and regulatory agencies have referenced Stanley Hoâs associations with criminal enterprises, including permitting organised crime to operate and thrive within his casinosâ.
While Stanley was never arrested or convicted â and repeatedly denied his links to the triads â he did not deny the allegations that his casinoâs VIP rooms were used by the syndicates to launder money when the claim was put to him in 2007 by The New York Times.
Instead, he said that during the 1980s and 1990s, âanyone involved in gaming was vulnerable to such accusationsâ.
RELATED: Crippling blow to Crownâs $2.2bn casino
Mr Ho, now deceased, was reported to have associations with triads and dogged by accusations of money laundering.Source:Supplied
Years later, when Mr Packer secured licensing for his casino in Sydneyâs Barangaroo, he agreed to have nothing to do with his friendâs father due to his alleged crime links.
âTo the extent to which it is within its power to do so, Crown will ensure it prevents any new business activities or transactions of a material nature between Stanley Huang Sun Ho or a Stanley Ho associate and Crown, any of Crownâs offices directors or employees or any Crown subsidiary,â the VIP Gaming Management Agreement stated.
Mr Packer also agreed to prevent âStanley Huang Sun Ho or a Stanley Ho associate from acquiring any direct or beneficial interest in Crown, a subsidiary of Crown, Melco Crown or a subsidiary of Melco Crownâ.
From the surface, it didnât look to be an issue â Lawrence Ho had publicly distanced himself from his father and set himself up as the competition, and there was no suggestion he was himself involved in any criminal activity. Legally, at least, it was assumed that the two Ho men had severed all ties.
Yet Stanley never truly left the fold. A secret NSW Government banning list, released as part of the inquiry, revealed that Melco's biggest shareholder was a trust in the Virgin Islands called Great Respect â of which he was a beneficiary until his death.
Last October, Mr Packer told the inquiry he was at one time aware that Melco was partially owned by a family trust called Great Respect, but that he âgave it no thoughtâ.
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RELATED: Mounting fallout at Packerâs Crown
Mr Packerâs $2.2 billion Barangaroo Crown project in Sydney. Picture: Jeremy PiperSource:News Corp Australia
James Packer during the NSW Casino Inquiry last October. Picture: SuppliedSource:Supplied
The arrest of 19 Crown employees in China in October 2016 was followed by an explosive investigation by Nine Newspapers and 60 Minutes into Crownâs operations in China â that showed Crown was âprepared to get into bed with junket operators backed by Asian organised crime syndicates called âtriadsââ.
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In early 2020, Melco announced that it would not pursue its planned investment in Australia as a result of the impact of the coronavirus pandemic, and its remaining stake in Crown was later sold to Blackstone.
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And while the inquiry ruled that there had been no breach in the intended sale to Mr Ho, almost everything else about Crownâs operations â revelations of personal threats and accusations of negligence in policing to illegal or unlawful operations in China â were cause for alarm.
âAny applicant for a casino licence with the attributes of Crownâs stark realities of facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals with connections to triads and organised crime groups would not be confident of a positive outcome,â the report said.