Embattled Australian operator Crown Resorts has confirmed that CEO Ciarán Carruthers, who was just appointed to the role in September 2022, is now under an internal investigation surrounding two instances in which Carruthers allegedly overrode security guards at Crown Melbourne to allow removed patrons back into the casino.
In a statement to the Australian Financial Review, Crown said it has “engaged external counsel to conduct an independent review of these matters. Until such time the review is complete, we are unable to comment further.”
The AFR report noted that in addition to the allegations surrounding Carruthers, the investigation will also evaluate whether senior officials at Crown should have their authority limited in future matters related to player safety.
The first instance reportedly took place on November 25, when Carruthers was said to have stepped in to allow an intoxicated woman back onto the casino floor after she had been removed, according to a separate report from The Age.
The second instance reportedly involved Carruthers stepping in to permit access for a patron who was under a one-year ban for previously bringing a minor into the casino—this was said to have also occurred in November, although no date was listed.
On December 13, the company’s Chief Legal and Compliance Officer Anthony Pearl sent a memo to staff confirming the reports and urging employees to come forward with any further information or allegations that may assist in the investigation.
“As an organization, we are committed to supporting and encouraging our team members to speak up as well as promote actions and behavior that align with our code of conduct and company values,” the letter said, as reported by The Age.
Additionally, an employee petition has reportedly been circulating throughout the company asking Crown’s parent company, U.S.-based Blackstone Group, for additional support for security staff. The petition has also allegedly asked for a public apology from Carruthers.
Carruthers, who has been in the casino industry for more than two decades, previously served as COO of Wynn Macau before being brought in by Crown last year to help with the company’s massive remediation efforts.
In 2021, Crown was deemed unsuitable for licensure in Victoria following a litany of compliance failures highlighted by the Finkelstein Royal Commission, and a third-party manager was appointed by the state government to help ensure that the company was taking the necessary steps to return to suitability.
The company’s licenses were reinstated on a conditional basis once Blackstone acquired the operator in mid-2022, and Carruthers was seen as a solid choice to help right the ship given his experience and hands-on attitude.
In a statement to The Age, the Victorian Gambling and Casino Control Commission said that it “will review the outcome of Crown’s investigation before determining what, if any, further regulatory action may be taken.”
The publication Inside Asian Gaming, which had been intimately familiar with Carruthers from his time at Wynn Macau, said in a recent report that “given what we know about the remediation work he has been committed to at Crown, we find it astonishing that he would do anything to jeopardize that work.”
