Australian operator Crown Resorts has announced that current CEO Steve McCann will soon resign after an exhausting 13-month tenure, with industry veteran Ciarán Carruthers set to take his place once he receives the requisite regulatory approvals. Carruthers is currently COO of Wynn Macau Ltd.
According to Crown, the change will take effect September 30, with McCann staying on for a short period to help guide the transition.
The company also announced a number of other appointments: Bill McBeath, former CEO of the Cosmopolitan in Las Vegas, is the new company chairman; John van der Wielen, former head of HBF Health, is the new chairman of Crown Perth; and John Borghetti has been named chairman of Crown Sydney after previously serving as managing director of Virgin Australia.
The news comes shortly after Crown was officially acquired by Blackstone Group, the U.S.-based investment giant. In an interview with Inside Asian Gaming, Chris Tynan, Blackstone’s head of real estate Australia, thanked McCann for “his leadership over the last 13 months, including implementing a strong reform and remediation plan and improving the culture of Crown Resorts.”
Tynan also welcomed the new hire by calling Carruthers a “highly experienced and respected industry veteran who shares our commitment to continuing the transformation at Crown and delivering an exceptional experience for all visitors.”
Carruthers told IAG that he is thankful for the work McCann has done to this point, and that he is “looking forward to working closely with them, along with the governments, regulators, unions and customers as Crown enters this new era.”
With over 30 years of experience in gaming, Carruthers is no stranger to the challenges associated with the industry, but his appointment comes at a pivotal time for Crown. The operator is still recovering from a $54 million fine from New South Wales (NSW) authorities regarding its use of China UnionPay bank cards; Crown is also preparing to relaunch its gaming operations after having its licenses reinstated in Victoria, NSW and Western Australia following Blackstone’s takeover.
McBeath comes on board after Blackstone finalized the sale of the Cosmopolitan, which McBeath had revitalized over the last several years. His departure from the property only mentioned that he was going to stay on with Blackstone, but nothing as specific as becoming Crown chairman. Prior to running the Cosmopolitan, McBeath spend his career with MGM Resorts and Mirage Resorts, running such properties as the Mirage, MGM Grand and Aria.
Those developments aside, more trouble is coming from Victorian regulators, in the form of a massive fine that could reach upwards of $69 million for violations of responsible gaming regulations. Additional disciplinary actions are also on the table.
According to the Victorian Casino Control Commission (VCCC), the state has decided to reopen its investigation of Crown after hearing the details discovered in other inquiries.
VCCC chair Fran Thorn told Asian Gaming Brief that the agency will be “unflinching in its resolve to deal with the issues uncovered at the Royal Commission regarding Crown’s approach to responsible gambling, and to ensure the casino operator acts in line with its legal obligations and the community’s expectations.”
Thorn said that Crown’s neglect of harm minimization efforts may have put “thousands” of Victorian gamblers at risk.
The VCCC is expected to announce more details once Crown responds to requests for company information regarding its responsible gaming and harm minimization policies.
