Crown Resorts CEO Ciarán Carruthers to Exit Company at the End of the Year
Crown Resorts has recently announced another change in its leadership structure, with CEO Ciarán Carruthers set to depart from the company by the end of the year.
Crown Resorts CEO Ciarán Carruthers in a PR photo. (Source: Crown Resorts)
LISTEN TO THIS ARTICLE:This decision marks the end of Carruthers' tenure, which began in September 2022 when he was brought in to steer the company through a transformative phase. Carruthers' leadership has been pivotal in navigating Crown through a series of regulatory challenges, particularly in Melbourne and Sydney, where the company faced intense scrutiny. During his time at the helm, he led a comprehensive overhaul of the company's operations, focusing on compliance and restructuring to meet the stringent demands of regulators.
Under Carruthers' guidance, Crown emerged from a period of uncertainty with its licenses intact, a testament to the effectiveness of the remediation processes he implemented. The company's properties in Melbourne and Sydney were deemed suitable by state regulators, while significant progress was made in the transformation program at Crown Perth.
Carruthers' departure comes at a time when Crown Resorts is still in the midst of addressing trading weaknesses in its Sydney and Melbourne locations. His successor, David Tsai, who has been appointed as the interim CEO starting September 1, will inherit the task of continuing the company's trajectory toward stability and growth. Tsai's experience as President and Chief Operating Officer at Crown Resorts positions him well to take on this interim role.
The announcement of Carruthers' exit follows a series of management changes within Crown. Carruthers' leadership has been instrumental in setting a new direction for the company, one that prioritizes regulatory compliance and operational excellence. His decision to step down is said to be motivated by a desire to pursue other interests, following a period of intensive work dedicated to Crown's transformation.
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Crown has encountered a series of legal and regulatory challenges over the past years. In one development, the company was fined AUD80 million (US$54.1 million) for illegally accepting Chinese bank cards at its Melbourne casino, a violation that was discovered to have occurred between 2012 and 2016. This fine was imposed as the transactions were falsely classified as hotel services, a misrepresentation that allowed the casino to circumvent regulations designed to prevent money laundering and excessive gambling.
The Victorian Gambling and Casino Control Commission (VGCCC) identified that Crown processed AUD164 million (US$111 million) in China UnionPay card payments, which generated AUD32 million (US$21.6 million) in revenue. This scheme not only breached Australia's casino regulations but also facilitated a method for Chinese nationals to exceed the legal limits of foreign currency expenditure imposed by Chinese law. The VGCCC's findings highlighted the need for stricter oversight and adherence to legal standards within the gambling industry.
Further complicating Crown's situation, an independent inquiry found that Crown Melbourne had engaged in conduct that was described as 'disgraceful.' The inquiry, led by former judge Ray Finkelstein, revealed that the company had underpaid taxes, facilitated money laundering, and exploited problem gamblers. This behavior was deemed illegal, dishonest, unethical and exploitative, leading to a two-year period during which Crown's Melbourne casino must operate under the supervision of a government-appointed manager.
Despite the severity of these findings and others, each inquiry allowed Crown to retain its gaming license, albeit under close supervision by independent monitors and auditors.
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