Crown Resorts launches internal review into Ciaran Carruthers

Crown Resorts is under the eye of regulators once again, as it conducts an internal review into the man tasked with rebuilding the crisis-ridden casino group.

Crown Resorts chief executive Ciaran Carruthers at Crown Casino in Melbourne. Picture: NCA NewsWire / Andrew Henshaw

Victoria’s casino regulator is investigating how a minor was allowed to roam the gaming area of Crown Resorts’ Melbourne casino, amid a separate internal review into the gaming giant and its boss Ciaran Carruthers, ahead of critical regulatory hurdles surrounding the company’s suitability to hold casino licences in Australia.

Crown, which was taken over by US private equity group Blackstone last year following revelations it failed to prevent money laundering activities at its casinos, confirmed on Wednesday it had engaged an external law firm to conduct the review, but provided few details about the matters being investigated.

“In accordance with Crown’s governance protocols, we have engaged external counsel to conduct an independent review of these matters. Until such time the review is complete, we are unable to comment further,” a spokesman for the company said in a statement.

According to reports in the Australian Financial Review, the investigations involve Mr Carruthers’ alleged intervention to allow banned and drunk patrons back into Crown’s Melbourne casino after they’d been ordered to leave by security.

It is claimed one of the patrons had been removed and given a one-year ban after bringing a minor into the gaming area.

The Victorian Gambling and Casino Control Commission (VGCCC) - the independent regulator created in the wake of the royal commission into Crown’s Melbourne casino in 2021 - has been informed of the review and is currently investigating the circumstances that allowed the minor to be brought into the gaming area.

“The VGCCC was previously aware of a minor being allowed onto the premises and is actively investigating,” the VGCCC spokesman said.

“The VGCCC will review the outcome of Crown’s investigation before determining what, if any, further regulatory action may be taken.”

Mr Carruthers, who took over the reins at the embattled casino group in September last year, is a 34-year veteran of gaming, having spent two decades in Macau before his appointment by Crown to revamp the company and rebuild trust with regulators.

The latest setback comes as Crown awaits the outcome of reviews into its operation of casinos in Melbourne, Sydney and Perth.

Stephen O’Bryan KC - the special manager the Victorian government appointed to oversee Crown Melbourne following the royal commission’s damning findings into the group - will lodge his final report with the regulator in January before his two-year term expires in June 2024.

The regulator will then decide if Crown should keep its casino licence.

Similar processes are under way in Sydney and Perth, where state regulators will make decisions about Crown’s licences in those states later next year.

A spokeswoman for the special manager’s office said it would monitor Crown’s internal review ahead of its final report in January.

“The OSM (Office of the Special Manager) is aware of Crown’s investigation into allegations concerning the Crown Resorts CEO,” she said.

“The OSM is monitoring this matter as part of the Special Manager’s independent oversight of Crown’s Melbourne casino, and will liaise with the Victorian Gambling and Casino Control Commission as appropriate.”

A spokeswoman for the NSW Independent Casino Commission declined to comment on the internal review launched by Crown.

Blackstone acquired Crown for $8.9bn last year, ending the Packer family’s rein over the casino empire.

The royal commission, led by former federal court judge Ray Finkelstein, effectively ordered James Packer to sell his 37 per cent stake in the company after exposing a series of governance failures that allowed money laundering activities to occur at its casinos, noting Packer’s influence over the company played a “key part” in “Crown’s pursuit of profit at all costs” approach to running its company.

New chairman Bill McBeath has said it would take longer than five years to transform the business as it seeks to regain the trust of governments and regulators after three bruising inquiries in three states.

Crown booked a near $199m loss in 2022-23, following a near $1bn in the previous year, and has paid $700m in fines relating to its previous money laundering failures.

The latest review, which was initiated by Crown’s board, does not involve allegations of money laundering breaches.

Originally published as Crown Resorts launches internal review into Ciaran Carruthers