Crown Resorts CEO Steve McCann gone two weeks after private takeover

The boss of Crown Resorts is out the door after barely spending a year in the role and just two weeks after the casino giant’s takeover.

Crown Resorts has announced the shock exit of head honcho Steve McCann just two weeks after the Aussie casino giant was taken over by US private equity firm Blackstone.

Chief executive Mr McCann had only been in the top job at Crown for a year and arrived as the company was battling to rebuild its reputation following a series of damaging public scandals.

Blackstone said he would be replaced by industry veteran Ciaran Carruthers, who has just resigned as chief operating officer of the Wynn Macau casino.

Steve McCann will exit as Crown Resorts boss.

Mr McCann has just received a one-off grant of 400,000 performance rights that vested with the takeover, netting him about $5.2m.

According to Blackstone, Mr McCann will now be pursuing “other opportunities”.

Thursday’s shuffle comes a fortnight after Blackstone’s $8.9bn takeover of Crown came into effect and continues a tumultuous time for the Australian gambling industry.

“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 in a statement.

“I’d like to thank the hardworking board members of Crown who have provided me tremendous support as well as every member of the team who has contributed their important part.”

Mr McCann was one of several new Crown appointments in 2021 following a boardroom clearout necessitated by a series of damaging public inquiries.

The company, which runs big casinos in Melbourne, Sydney and Perth, was dragged over the coals in those three states for its poor corporate culture and adherence to responsible gambling laws and links to money laundering and organised crime.

Crown employees alongside outgoing Crown Resorts chief executive Steve McCann (front right), and Blackstone head of real estate Australia Chris Tynan (front left) when the company’s takeover came into effect two weeks ago.

Rival casino operator Star Entertainment is now going through its own inquisitions in NSW and Queensland amid similar allegations.

Crown has so far managed to retain each of its operating licences despite being found in three states that it was “unfit” to run a casino.

The company in June was given permission to finally open its casino at the luxury Barangaroo Resort in Sydney, having only been allowed to run accommodation and food services for the first 18 months of its existence.

It does, however, face an ongoing slog to prove that it can abide by the rules and could yet receive massive fines for its alleged transgressions.

Also probed during the public hearings was the influence enjoyed by former major shareholder James Packer.

Mr Packer received $3.3bn for his slice of Crown shares after Blackstone completed the long-mooted buyout last month.

Blackstone on Thursday thanked Mr McCann for helping to implement “a strong reform and remediation plan and improving the culture of Crown Resorts”.

Outgoing Crown chief executive Steve McCann. Picture: Richard Dobson

Blackstone said it was committed to investing in Crown and to helping it realise its true potential as a world-class leader in travel and leisure.

To that end, it unveiled new board appointees and flagged others to follow.

As well as the capture of Mr Carruthers, Bill McBeath has been plucked from The Cosmopolitan in Las Vegas and will be named chairman.

Former Virgin Australia managing director John Borghetti will be chair of Crown’s Sydney operations and John Van Der Wielen will chair Burswood Pty Ltd, or Crown Perth.

“Ciaran Carruthers is a highly experienced and respected industry veteran who shares our commitment to continuing the transformation at Crown and delivering an exceptional experience for all visitors,” Blackstone said on Thursday.