Tuesday marked the announcement that John Borghetti, Chair of Crown Sydney, will be appointed as Chair of Crown Resorts in July following the stepping down of William McBeath, who will remain a member of the board.
Mr McBeath was appointed as Chair of Crown Resorts in 2022 and led the company through its extensive remediation process after the year prior saw Crown Resorts be fined and deemed unfit to retain its licences in several Australian jurisdictions due to money laundering. Earlier this year, however, Crown Melbourne and Crown Sydney were granted licensing approval by the Victorian and New South Wales (NSW) gambling regulators, respectively. In the Tuesday announcement, Mr McBeath spoke of how proud he was of the company for this achievement. As for the Crown-branded casino resort in Perth, its remediation process is underway.
Mr McBeath continued, deeming the current time appropriate for an Australian-based Chair to take the lead and ensure Crown Resorts remains committed to transforming its business, working towards sustainability, and ensuring compliance with regulators. He welcomed Mr Borghetti and commended him for his “extensive operational, leadership and governance experience,” which, according to Mr McBeath, is what will result in Crown’s growth and enable the company to work toward operating safely and in a responsible manner.
The Tuesday announcement also includes a statement by Mr Borghetti, who expressed gratitude towards Mr McBeath for his work in leading the Crown Resorts board while the company was in the process of “unprecedented transformation.”
“I look forward to continuing the transformation of Crown Resorts,” he continued, stressing that he will strive to ensure that Crown Resorts will not just meet, but exceed the expectations of all of the company’s stakeholders.
What Lies Ahead for Crown Resorts Rival Company The Star
Crown Resorts’ situation contrasts that of one of its top competitors, The Star, which is currently in the middle of its own regulatory struggles. The problems for The Star began in 2022 when the NSW’s casino regulatory body conducted an investigation into the then-alleged violations of NSW money laundering laws.
Named “The Bell Review” due to being helmed by Adam Bell SC, the investigation had devastating consequences for The Star after it was found guilty of failing to meet a number of regulatory compliance requirements. As a result, The Star was handed an AU$100 million fine, and the regulator declared it unsuitable to hold a licence.
The Star’s remediation procedures seem to have not been going as planned, however, as it was recently revealed that the NICC was not impressed with the company’s progress. This led to the NICC launching a second inquiry, which began in February 2024 and is currently underway. The probe is once again led by Mr Bell, and each hearing is held in public.
If the results of this second investigation are positive, it might be possible for The Star’s situation to eventually mimic that of Crown Resorts and for the company to get back on its feet in terms of regulatory approval. Mr Bell’s report is set to be submitted by July 31st.
- Author
Daniel Williams
