Former Virgin boss John Borghetti to chair Crown casino group

Crown has named former Virgin Australia chief executive John Borghetti as chair of the integrated resort and entertainment group.

Incoming Crown chairman John Borghetti. Picture: Chris Pavlich

Blackstone-owned Crown Resorts has named former Virgin Australia chief executive John Borghetti as chair as it moves to beef up its local leadership team.

Mr Borghetti’s appointment follows US-based William McBeath’s decision to step back as chair after overseeing Crown’s remediation efforts and reforms since July 2022. Mr McBeath will continue as an independent non-executive director.

It is expected Mr Borghetti’s extensive experience with regulators and government will help Crown navigate closer scrunity of the gaming sector following widespread finding of money laundering and other misdeeds.

US-based private equity giant Blackstone purchased Crown Resorts for $8.9bn in 2022, and Mr McBeath on Tuesday said it was now appropriate for an Australian to head the Melbourne-based company. Mr Borghetti is currently the chairman of Crown Sydney.

“Now is the time to appoint an Australian-based chair who will continue Crown’s focus on transformation, regulatory compliance, and safe and sustainable future growth,” said McBeath, who previously ran The Cosmopolitan casino in Las Vegas..

“Mr Borghetti will lead the board in its strategic development of Crown’s businesses in Victoria, New South Wales, and Western Australia, working constructively with government and regulators.” Victorian regulators ruled in March that Crown would be allowed to retain its Melbourne casino licence, but was on notice that the public expected it to be “run honestly and free of criminal influence.”

The fate of Crown’s lucrative casino licence had been in the balance after revelations the business had been facilitating money laundering and organised crime. It was given two years to reform the business to prove it remained suitable to continue to hold the licence.

In April this year, the NSW Independent Casino Commission found Crown Sydney suitable to retain its full operating licence after nearly three years of remediation.

John Borghetti now head of Crown Resorts

NICC chief commissioner Philip Crawford said the decision was made after careful consideration, noting the regulator had found the Sydney casino was suitable to hold its licence. He said this was after the casino showed it could update and improve its operations and worked cooperatively with the regulator.

Crown Resorts chief executive, Mark McWhinnie said at the time the decision ended years of uncertainty for the company once owned by James Packer.

“Since opening the Crown Sydney casino in August 2022, we have worked tirelessly to implement wholesale reform across our business, delivering 432 remediation activities to the NICC across key areas, including harm minimisation, financial crime, compliance, risk, and culture,” he said. “Crown Sydney is the safest place to gamble in the state.”

The future of competitor Star Entertainment remains less clear with Adam Bell SC’s five-week inquiry into its suitability to retain its troubled Sydney casino officially ending last month with his final report expected by the end of July.

Mr Borghetti, 68, said he looked 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.

Mr McBeath said Mr Borghetti was a “very highly regarded director and executive” whose extensive operational, leadership and governance experience would ensure Crown continues to focus on safe and responsible operations.

Mr Borghetti has over 47 years’ experience in the aviation industry, including nine years as boss of Virgin. Previously he had served as executive general manager at Qantas for six years where he was responsible for more than $10bn in annual revenue and assets including about 200 aircraft.

He is currently a director of Balmoral Pastoral Investments and a Member of O’Connell Street Associates. He was awarded a Member of the Order of Australia in 2017 for distinguished service to the Australian aviation industry, to the development of national and international tourism opportunities and as a supporterof the arts and sport.

He has previously served as a director at Brisbane Airport Corporation, Alinta Energy, Coca-Cola Amatil, Energy Australia,and the Art Gallery of New South Wales.

Crown Sydney was found suitable to retain its full operating licence earlier this year. Picture: Max Mason-Hubers.