The head of Crown Resorts expressed unyielding optimism to AGB about the group’s capability of preserving their casino licenses in Sydney and Melbourne, even though the procedure proved to be more challenging than initially believed and regulatory scrutiny is expected to persist.
Ciarán Carruthers, the Chief Executive Officer at Crown Resorts, confidently stated in an interview with AGB, “I was always highly hopeful that we could achieve it as we had the dedication, the proficiency and the financing from Blackstone was guaranteed. More than AU$200 million has been invested post-acquisition in ensuring that the work and resources required were available.”
Crown Sydney received approving reports near the end of April, nearly a month following the declaration that the group was deemed satisfactory to retain its Melbourne license.
Blackstone’s Influence and Crown’s Legacy
In 2022, Blackstone assumed majority control of Crown Resorts, coinciding with Caruthers’ appointment as CEO. Caruthers indicates, “These problems weren’t issues of new ownership or management, they were historic legacy issues.”
The completion of the two remediation processes involved hundreds of millions of dollars, over 10,000 pages of documentation and a total overhaul of the company’s modus operandi.
Revamping the Company Culture
Caruthers explained that the cultural transformation required an analytical view of everything: work methods, decision-making processes, employee interactions, guest relations, community involvement, and stakeholder relations. All facets had to be deconstructed and then rebuilt from scratch, under a tight schedule and intense scrutiny from regulators, monitors, media, and the community, while trust was being restored.
He confidently shares that the problems of the past in Melbourne and Sydney have been resolved in the eyes of the regulators. They are aware of Crown Resorts’ transformation into a different organization with different owners, a different CEO, and different Boards.
Overcoming the Last Roadblock
Despite the significant progress, Crown Resorts still has to clear one last hurdle: Crown Perth.
“We’re currently undergoing a remediation process in Perth that’s likely to extend for another 12 months,” the CEO of Australia’s largest casino operator commented.
The CEO maintains the confidence he initially displayed towards Melbourne and Sydney concerning Perth, and is optimistic about successfully operating an integrated resort with integrity as a core value.
