CEO of Crown Resorts Scores Internal Review Win

No Laws or Regulations Broken, Report Finds 

Accusations of improper behavior against Ciaran Carruthers, the serving CEO of Crown and former CEO of Wynn in Macau, were brought forward by a company whistleblower in 2023. They suggested that the casino chief had stepped in and overruled venue security to allow entry to an individual who had previously been banned for taking a minor with him into one of the company’s casinos. According to Reuters reporting from late last year, the Victorian Gambling and Casino Control Commission (VGCCC) were preparing to involve themselves with Crown Resorts and were looking at the possibility of fines for the embattled casino company. They released a statement saying that they would “review the outcome of Crown’s investigation into its CEO before determining what, if any, regulatory action may be taken”. This suggested that there was extreme importance being placed on the internal investigation, which could have seen further fines and restrictions being placed on a company that has become accustomed to them in recent years.

 

However, now that the report has been released, it appears that the VGCCC will not have to involve themselves further in the situation. In early February, the chairman at Crown, Bill McBeath, penned an email to employees at the company explaining that the investigation into the CEO had found no wrongdoing on his behalf. The Australian Financial Review reports that it read that “no regulations or laws were breached”, clearing the Blackstone-appointed executive of what would likely be seen as gross misconduct. It does appear that this has sufficed for the commission, too, as they spoke out following the release of the findings and expressed that they were happy with the result and that they don’t feel that a further investigation is necessary in this case. This will no doubt bring with it a sigh of relief from the management team at Crown as they appear to have managed a potential crisis while dodging a bullet that could have done some serious damage to both reputation and the company’s bottom line.

 

Where Now for a Company in Trouble

It’s good to see that one of the last big names of casinos in Australia in the gambling industry has managed to weather a potentially extremely difficult situation. These sorts of scandals can very easily spell the end of institutions and it would be a sad day for the country if that had been the case. With that said, it does seem to be just another tumultuous day in a calendar full of them for Crown. In 2022, the company’s portfolio was wholly acquired by US private equity group Blackstone after controversy hit in the form of accusations of possible money laundering within its casinos. Since then, it has ceased to allow overseas gamblers, from China in particular, to use its services in order to avoid any potential inadvertent law breaking. Those issues led to a review by Victorian authorities and the company has agreed a AU$450 million fine. It’s clear to see that this has not been a vintage decade for the casino industry in Australia. So how will Crown move forward and look to build a brighter future?

 

The rot will have to stop for the company at some point. No organization can continue to operate in the shadow of regular controversy, especially if this also comes with hefty fines and restrictions on operations. In order to ensure a healthy future and even a return to growth and, ultimately, success, there must be an overhaul of the company’s attitude from the top down. Bill McBeath, in his email to employees, mentioned that whistleblowing is important to building a strong and healthy professional atmosphere. Oversight and accountability are clearly key to the ongoing viability of Crown Resorts and this will likely form the basis of the approach moving into the second half of this decade. Time will tell if it’s enough to right the wrongs of previous years.