Crown Resorts CEO Ciarán Carruthers to step down, search for replacement launched

Ciarán Carruthers, the CEO of Crown Resorts, will step down at the end of the year after two years in the role. His departure comes at a time when the company has regained regulatory approval and shown signs of financial improvement.

Carruthers, who hails from Ireland and began his career as a casino dealer in London, will be succeeded by David Tsai, currently Crown's president and chief operating officer, who will serve as acting CEO starting September 1.

During his tenure, Carruthers led Crown through a challenging period marked by significant reforms. Under his leadership, Crown Melbourne and Crown Sydney were both deemed suitable to retain their casino licenses by state regulators.

He stated: “I am very pleased to hand over a stronger, compliant, and transformed business to its next leader. There is more work to do, but I am very proud of what we have achieved as a team.”

David Tsai, who will take over as acting CEO, has an extensive background in the gaming industry. He previously served as CEO of Crown Perth and held senior positions at MGM in the United States, including president of the MGM Grand Detroit.

Carruthers’ tenure was not without controversy. In February, he was cleared of any wrongdoing following an investigation into allegations that he allowed patrons to re-enter Crown Melbourne's casino after being removed by security. Both an independent external counsel and the Victorian Gambling and Casino Control Commission found no breach of regulations or laws by Carruthers regarding the incident.

Crown Resorts has announced that an international search for Carruthers' permanent replacement is underway. John Borghetti, Crown Resorts’ chairman, praised Carruthers for his contributions during a critical period for the company: "This resulted in Crown retaining its license to operate in both Victoria and NSW, and Western Australia being well progressed."

Under Carruthers' leadership, Crown embarked on significant investments aimed at transforming its business model to be less reliant on gambling. The company plans to invest hundreds of millions of dollars in new hospitality attractions, including bars and restaurants. 

Carruthers acknowledged that Crown had fallen behind international trends that prioritize resort-style attractions over traditional gambling. "Any visitor to our properties in the last two or three months would have seen in Melbourne some significant changes already in terms of a number of new bars, while similarly in Perth we are well advanced with new bars and new restaurants," he told The Australian.

"The investment potential is significant, but how we actually deploy that over the next couple of years is still being determined."

Despite these changes, Crown Resorts, along with its competitor Star Entertainment, has faced significant challenges, including hefty fines and stricter oversight after being found to have facilitated money laundering and organized crime. Regulators in New South Wales and Victoria have allowed Crown to keep its casino licenses in Sydney and Melbourne, while Star Entertainment still faces uncertainty regarding its Sydney license.

Crown Melbourne continues to be the company’s top revenue generator, reporting a 60 percent increase last year to AUD 1.5 billion, including earnings from its hotel operations. Meanwhile, Crown’s Sydney property, Barangaroo, has seen its revenue grow at a faster rate, with a 139 percent increase to AUD 271 million.