Crown Resorts’ new chief executive, Ciaran Carruthers, says the casino giant isn’t banking on Chinese high rollers returning to Australia to boost its bottom line.
“I think there’s probably been an over reliance on the Chinese tourists in Australia; they’ve been such an easy target for some of the casinos of the past,” he said on Tuesday.
“Though I have great confidence tourism will return as the international borders continue to open up, Crown will not be going down the path of the old junket model.”
Crown would continue to cater to international tourists seeking accommodation, hospitality or entertainment, he said.
New Crown Resorts CEO Ciaran Carruthers.Credit: Simon Schluter
Officially in his second day on the job, Carruthers said he’d like to cement Crown as the gold standard for gaming, acknowledging that the business still had a lot of “heavy lifting” to do before he’s able to fully focus on transforming the culture as a whole.
“I’m here for the long term. My goal is to ensure Crown is the gold standard of a responsible gaming, entertainment integrated resort for our domestic, interstate and international customers,” he said.
Carruthers addressed employees from Melbourne on Monday, thanking incumbent chief executive Steve McCann – who only lasted in the role for about a year – for stabilising the group over the past 15 months as it weathered a reputational crisis and regulatory inquiries.
In 2019, an investigation by this masthead and 60 Minutes revealed Crown had been infiltrated by international criminal syndicates and money launderers. Since then, government inquiries in the three states where its casinos operate have ruled it unfit to hold a casino licence, preventing it from opening the high-rise casino at its newest $2.2 billion tower at Sydney’s Barangaroo in late 2020.
Crown was forced to overhaul its board, management and procedures to satisfy the regulators, who approved a conditional licence for Crown to operate its Barangaroo casino in June. The conditional licence is valid until December 31, 2023.
Carruthers’ appointment was announced just two weeks after New York-based private equity firm Blackstone took the reins at Crown in July. Crown shareholders voted to accept an $8.9 billion takeover offer from Blackstone in May, ending three years of chaos under former major shareholder James Packer.
Blackstone had stalked then ASX-listed Crown for more than a year before the pair completed the $8.9 billion takeover worth $13.10 cash per share in June.
Carruthers, a former chief operations officer at Wynn Macau, said his time at the Chinese gambling hub had left him well-equipped to navigate a stricter Australian regulatory environment.
“None of it is new or alien to me,” he said.
“Going forward, we will make sure we’re open, continuing to communicate with them [the regulatory bodies overseeing its Sydney, Melbourne and Perth casinos] to show the way we will conduct our business is as it should be in terms of a highly regulated privilege.”