Steve McCann exits Crown Resorts, Wynn Macau’s Ciarán Carruthers named as new CEO

The departure activates a $9m payout clause in Steve McCann’s employment contract, after Blackstone’s takeover of Crown.

US private equity titan Blackstone has installed former Wynn and Sands executive Ciarán Carruthers to oversee Crown Resorts as it prepares to open the gaming floor of its new $2.2bn casino at Barangaroo.

It is the second Las Vegas heavyweight Blackstone has appointed after completing its $8.9bn takeover of Crown two weeks ago, ending James Packer and his family’s decades-old links with the company.

Mr Carruthers will replace Steve McCann as chief executive, while former Las Vegas Cosmopolitan chief executive Bill McBeath will chair the company as it completes an extensive reformation to regain its suitability to hold a casino licence in three states.

Mr McCann — who was entitled to a $9m payout under a change of ownership clause in his employment contract — will stay at Crown until September to assist with the transition of the company’s leadership.

He joined Crown in June last year, taking the helm after a series of scandals — including revelations the company facilitated money laundering and other organised crime and failed to adhere to its responsible gambling obligations — which culminated in three inquiries in NSW, Victoria and Western Australia.

Crown is now facing the fallout of these scandals, facing several blockbuster fines from Austrac and state gaming regulators, with Blackstone left to pick up the bill.

The Victorian gaming regulator has already fined the company a record $80m over its illegal use of China Union Pay debit cards and this week announced the company faces another penalty of up to $100m after it failed to minimise harm caused by problem gambling.

Crown has made progress on its reformation and regaining its suitability. Mr McCann departs having completed the three main tasks he faced when he joined the company: regaining its suitability to hold a casino licence, bedding down its reformation so that its new $2.2bn Barangaroo site could fully open and solve its ownership after Mr Packer was forced to sell down his 37 per cent stake following the Victorian royal commission.

Crown Resorts was formerly controlled by billionaire James Packer.

But more work needs to be done, according to the special manager overseeing Crown’s flagship Melbourne casino, Stephen O’Bryan QC, who was appointed on the recommendation of Ray Finkelstein QC — the head of last year’s Victorian Royal Commission into the company.

In his first “activity report” Mr O’Bryan said while Crown is undertaking “a complex and significant reform program and it has already taken a range of positive steps”, “considerable further work is required by Crown to demonstrate the level of reform and embedded change the Finkelstein Royal Commission recommended”.

Mr O’Bryan also wrote that he was “encouraged by his early engagement with Blackstone senior representatives, who have indicated their commitment to the reform program”.

Mr McCann said Crown had been having weekly meetings with Mr O’Bryan’s office and while the company has been “progressing well” in Melbourne and Sydney, “there was still a bit of work to do” to get the company’s Perth operations “to the same status”.

“There is an independent monitor who will be appointed (overseeing Burswood) and so we’re waiting to see how that will work. And then we have to build our reform and remediation program around the new legislation and outcomes from the (Western Australian) Royal Commission,” Mr McCann said.

“So that’s the next priority. But most are closely interdependent so we’ve got the same overall mission in each city.”

Despite the NSW Independent Liquor & Gaming Authority granting Crown conditional approval last month to open its Barangaroo gaming floor — a decade after Mr Packer met with then NSW premier Barry O’Farrell over lunch at Alan Jones’s apartment to hatch plans for a new casino in Sydney — Mr McCann said it was not rushing its opening, with a date yet to be finalised.

“We’re very close and obviously it’s great news that the announcement came out about the licence to open and we’re putting the finishing touches on how that will look and you know what the customer experience is going to be so watch this space,” Mr McCann said.

“I don‘t want to give too many secrets away. There are a lot of people working hard to make that the best possible experience that we can.”

Crown Resorts has a new CEO. Picture: AFP

It is understood that the gaming floor will have a phased opening, to ensure its new technology and systems to know the identities of gamblers and the source of their funds and adhere to other conditions of its licence are implemented fully.

Crown is yet to fully regain its suitability and If it fails to deliver on these conditions, ILGA has indicated its licence could be revoked after its conditional period ends in 18 months. “We still can find them unsuitable,” ILGA chairman Philip Crawford said.

Mr McCann said he was “incredibly proud of what has been achieved at Crown over the past 13 months, through the tireless efforts of our 20,000 team members who have laid the foundations for Crown’s next chapter”.

He said he was now planning to finally take some time off after an “intense 13 months” at Crown. Mr McCann — who was chief executive of ASX-listed property giant Lendlease for 12 years before joining Crown — declined to comment on whether he would seek another executive role at a listed company or directorship.

“I’m looking forward to the next phase of whatever I’ll end up doing and I’ve got a few balls in the air but nothing in concrete. I’m certainly going to take my time to get a bit of a break and assess the opportunities going forward. I haven’t made any firm decisions.”

Mr Carruthers — who has more than 30 years’ experience, which include running Wynn Macau and senior vice president and director of the Venetian and Plaza operations for Sands China. He has also held several senior operational roles at casino resorts in Southeast Asia, the Philippines, and the US Pacific Islands — said he was joining Crown at a “significant moment in its history”.

“The reform, remediation and cultural transformation that have occurred under Steve’s leadership have been extraordinary, and I would like to congratulate him and his team for what they have achieved to date. I am committed to continuing that important work to ensure Crown achieves its ambition to be a world-leader in the delivery of safe and responsible gaming,” said Mr Carruthers, who will start at Crown in September.

“I am extremely passionate about our industry and providing customers with exceptional entertainment and hospitality experiences. I have stayed at Crown many times and know how dedicated and customer-focused its people are, and I’m looking forward to working closely with them, along with the Governments, regulators, unions and customers as Crown enters this new era.”

Blackstone’s head of real estate for Australia, Chris Tynan said Mr Carruthers was a “highly experienced and respected industry veteran who shares our commitment to continuing the transformation at Crown”.

“Blackstone is committed to investing in Crown, helping it realise its true potential as a world-class leader in travel and leisure. Part of that involves bringing in global expertise to complement the existing skills within the business,” Mr Tynan said.

Other appointments include John Borghetti as chairman of Crown Sydney and former HBF chief executive John Van Der Wielen as chairman of Burswood in Perth.

Originally published as Steve McCann exits Crown Resorts, Wynn Macau’s Ciarán Carruthers named as new CEO