Crown Resorts CEO Steve McCann departs as Blackstone installs new boss
It’s an American invasion at Crown Resorts as the gaming giant readies to install senior Las Vegas stalwarts to run its casinos in Sydney, Melbourne and Perth.
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It’s an American invasion at Crown Resorts, with the gaming giant appointing senior operations from Las Vegas stalwarts to run its casinos in Sydney, Melbourne and Perth.
Steve McCann, the Crown boss appointed just last year, on Wednesday said he would resign – and take a $9m payday – after the Packer-controlled casino group was sold to Blackstone, a massive North American private equity company.
The new owners are yet to outline plans for their Melbourne, Sydney and Perth complexes, but recent appointments may point the way to a bit of Las Vegas magic.
Blackstone said Ciarán Carruthers would take over Mr McCann’s role.
Mr Carruthers has worked for major US casino groups including The Sands and more recently Wynn, the operator of six different casinos including one in Macau, where he was last the chief operating officer.
Crown also appointed Bill McBeath as chairman – the long-time Vegas executive was last running The Cosmopolitan, the luxury resort and casino that has more than 3000 rooms and 10,000sq m of gaming floor. It is one of the largest resorts on the Las Vegas Strip.
During Mr McBeath’s time – and despite the pandemic – The Cosmopolitan has been a major success. Earlier this year it handed out an unprecedented $US5000 bonus to all 5000 staff.
Its not just the new appointments that hint at Blackstone’s intentions.
The private equity group, with $1.2 trillion in investments, owns The Bellagio – which is operated by MGM – and in April 2020 purchased the property assets of Mandalay Bay.
Mr McCann will leave in September.
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.
He has already overseen the company’s extensive reformations – which included the appointment of 60 new responsible gaming officers.
Mr McCann leaves Crown 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.
“I came into this role at a very challenging time for Crown and I will leave Crown proud that we have made a positive impact on the future of this business,” Mr McCann said.
“I have been following Crown’s journey for some time now and am excited to join the company 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,” said Mr Carruthers.
“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.”
Crown in Sydney has just been given the green light to operate its gaming floor. In Melbourne, the special manager overseeing the casino, Stephen O’Bryan QC, said on Wednesday that “considerable further work“ was needed “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 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.
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