Posted on: August 26, 2024, 09:19h.
Last updated on: August 26, 2024, 09:59h.
Crown Resorts CEO Ciaran Carruthers is departing the Australian casino company he helped overhaul amid regulatory turmoil.
Crown announced Monday that Carruthers will step down as the group’s chief executive effective September 1. Crown President and Chief Operating Officer David Tsai will become interim CEO on that date.
Crown Resorts Chair John Borghetti, who joined the Crown board in June after heading Virgin Australia, thanked Carruthers for his leadership that came at a critical time in the casino company’s history and resulted in the firm retaining its coveted gaming licenses and the organization undergoing a corporate restructuring.
Under Ciaran’s leadership, Crown has achieved critical milestones including a business transformation and remediation program,” said Borghetti. “Ciaran’s leadership and contribution has been highly valued, and we wish him every success in the future.”
Carruthers will remain with Crown in an advisory role until his full departure sometime before the year’s end.
Successful Tenure
US-based private equity giant Blackstone acquired Crown Resorts and its three casinos — Crown Melbourne, Crown Perth, and Crown Sydney — in early 2022 for more than $6 billion. Crown additionally owns Crown London, a private high-end members club in the ritzy Mayfair neighborhood, Betfair Australasia, and a 50% stake in the Aspers Group, which runs four regional casinos in the United Kingdom.
Crown at the time was facing government inquiries Down Under, probes that concluded that the company had severe compliance breaches in combatting money laundering and terrorism.
Blackstone rescued the company founded by billionaire James Packer by agreeing to pay $450 million in inquiry fines. Blackstone, which owns the real estate of several iconic Las Vegas Strip casinos, including the Bellagio, The Cosmopolitan, and Aria, then invested more than $130 million to update Crown’s operations to appease inquiry findings in New South Wales and Victoria.
Blackstone brass tapped Carruthers to lead the firm’s rehabilitation in September 2022. He replaced Steve McCann, who now heads Crown rival Star Entertainment.
Carruthers was credited for improving the organization’s regulatory compliance and enhancing its business performance despite a slowdown in consumer spending.
I am very pleased to hand over a stronger, compliant, and transformed business to its next leader. There is more work to do, but I am very proud of what we have achieved as a team,” said Carruthers.
Carruthers arrived in Australia by way of China’s Macau where he was COO of Wynn Macau and previously senior vice president and director of operations at Sands China’s Venetian and Palazzo resorts.
Exit Light on Details
During his time as CEO, Carruthers cut over 1,000 jobs to strengthen Crown’s bottom line. Carruthers said inflationary pressures and interest rate increases stressed consumers’ discretionary spending.
Carruthers committed to reducing Crown’s reliance on casino gambling and luxury offerings in favor of appealing to a wider range of possible customers. Crown embarked on a marketing campaign stressing that one doesn’t have to be a VIP or high roller to patronize its properties.
By most accounts, Carruthers’ time was a success. But Crown didn’t specify whether the company is seeking a new leader or if Carruthers’ exit was on his own accord.