Virgin Australia’s former chief executive John Borghetti will replace Bill McBeath as the chair of Crown Resorts from July.
McBeath, who has helmed the Crown board since the company was bought by private equity giant Blackstone for $8.9 billion in 2022, will step down after two years in the role, the casino operator said in an emailed statement on Tuesday.
Former Virgin Australia boss John Borghetti will take the chair at Crown Resorts.Credit: Dominic Lorrimer
Borghetti has been the chairman of Crown Sydney since Blackstone took over.
Crown has just emerged from a lengthy and expensive remediation process, and now has regulatory approval to operate its casinos in Sydney and Melbourne without independent monitoring. Its licences in the two states were withheld in 2021 after two royal commissions into its operations found the business had committed extensive anti-money laundering and counterterrorism failings.
McBeath, who is credited with helping the company juggle the regulatory demands of NSW, Victoria and Perth, will continue to hold a seat on the board.
“Now is the appropriate time to appoint an Australian-based chair, who will continue Crown’s focus on transformation, regulatory compliance, and safe and sustainable future growth,” McBeath said.
Borghetti helmed Virgin until March 2019, about one year before the company fell into administration due to the financial pressures of operating a grounded airline during the COVID-19 pandemic.
He has previously had board roles at Brisbane Airport, Alinta Energy, Coca-Cola Amatil, Energy Australia and the Art Gallery of NSW.
“I look forward to continuing the transformation of Crown Resorts, ensuring the company exceeds the expectations of all its stakeholders, including government, regulators, guests and team members,” Borghetti said in a statement.
“The board’s priority remains on compliant, safe, and profitable operations while ensuring we position the business for future growth.”
While Crown has successfully navigated its regulatory hurdles, the next phase of the business will be focussed on finding a way to become financially profitable. There has been significantly lower spending throughout its three casinos due to a lack of foreign tourists and disparity between the regulations imposed on it and its rival pubs and clubs.
Crown Perth has poker machine exclusivity in the state and its gaming revenue has been less affected than that of the other two casinos as a result. Crown Barangaroo opened in August 2022 and has no poker machines due to rival Star Sydney’s exclusivity deal with the NSW government.
Crown Melbourne has transitioned its 2600 poker machines to carded play. Sources close to the company’s financials say this has resulted in lower earnings.
Crown has cut about 1500 jobs over the past two years as part of a restructure launched in an attempt to offset the weaker economic conditions. It’s also paid about $700 million in remediation penalties since 2021.
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