The CEO of Chinese online sports lottery operator 500.com has temporarily stepped down from his roles at the company amid ongoing investigation into whether it has bribed Japanese lawmakers to win one of three casino licenses up for grabs in Japan.
The board of 500.com approved Pan Zhengming’s request to temporarily vacate his Chief Executive post on December 30, according to a statement issued today by the company. Mr. Pan also vacated his seat on the company’s board.
The executive told board members that he had to step down while an internal committee conducts a probe into “alleged illegal money transfers” and the role played by 500.com consultants in Japan.
Last month, Tokyo prosecutors arrested Tsukasa Akimoto, a former senior vice minister at Japan’s government and a former member of the ruling Liberal Democratic Party, for allegedly taking a bribe from 500.com to use his authority and spearhead the Chinese company’s bid to win a license for an integrated casino resort in Hokkaido.
500.com opened an office in Japan in the summer of 2017, indicating that it was interested in participating in the introduction of integrated casino resorts in the country. The company allegedly bribed Mr. Akimoto in September 2017. According to Tokyo prosecutors, the money used for the bribe had entered Japan illegally.
Three 500.com Employees Remain Under Arrest
Aside from Mr. Akimoto, Tokyo prosecutors arrested last month three former 500.com employees for allegedly bribing the lawmaker. One of the arrested individuals was the former head of the Chinese gambling operator’s Japan operations, while the other two worked as consultants for the company.
Mr. Akimoto is believed to have received JPY3 million in cash from the three arrested suspects. According to prosecutors, 500.com also covered the expenses for a trip to Hokkaido that Mr. Akimoto and his family took in February 2018. The Japanese lawmaker maintains his innocence and says that he has not taken any money from 500.com.
One of the arrested former company consultants told prosecutors that he also handed JPY1 million in cash to each of five other Japanese lawmakers. All five were voluntarily questioned last week and denied allegations that they were involved in the bribery case.
They also told prosecutors that they received political contributions from a travel agency that is understood to have partnered with 500.com to pursue a casino license for a resort in Hokkaido, but were not informed that the money actually came from the Chinese gambling operator. Political donations from foreign individuals or organizations are prohibited under Japanese law.
The Tokyo District Court late last week extended the arrest of Mr. Akimoto and the three former 500.com employees. The Japanese lawmaker, who left the Liberal Democratic Party after his detention on December 25, will remain under arrest until at least January 14.
Source: Chinese gambling site’s CEO steps aside amid Japan casino scandal
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