The Crown Resorts CEO allegedly allowed banned patrons to re-enter the company’s casino in Melbourne, defying security officers. [Image: Shutterstock.com]

Bad publicity

Crown Resorts is in the news for all the wrong reasons once again. This time it is making headlines because of accusations aimed at the company’s CEO Ciarán Carruthers who allegedly permitted banned patrons to enter the Crown Melbourne casino.

he let an intoxicated customer remain on the premises

He supposedly overruled internal security officers who had prohibited certain customers from entering. One person was serving a one-year ban for bringing a minor into the gaming area when Carruthers allowed them to re-enter the property last month. On another occasion, he let an intoxicated customer remain on the premises after security told them to leave.  

Some of the individuals on the security team signed a petition outlining how the actions of the CEO led to them having to “break the law.” This petition seeks an apology from Carruthers for making them feel “insignificant, snubbed, and scared” for their jobs. The CEO was set to have two meetings in the last week with the unhappy employees, with neither of them going ahead.

Looking into the matter

Crown’s board is now investigating the allegations through external legal counsel, calling on employees to come forward with details of any other potential transgressions. It is also deliberating about limiting the power of management when it comes to certain customer safety issues.

The Victorian Gambling and Casino Control Commission confirmed on Wednesday that it is aware of the accusations and is now investigating the matter.

Carruthers worked in Macau for two decades

Carruthers has served as the head honcho at Crown since September 2022 after US private equity firm Blackstone took over the company for about AU$8.9bn (US$5.8bn). Before joining Crown Resorts, Carruthers worked in Macau for two decades and served as the Chief Operating Officer of Wynn Macau.

Plenty of turbulence in Australia

These latest revelations have come at a bad time, with a final report due in January from a special manager who will decide if Crown can hold onto its license in Melbourne. It was given two years to show that it can reform and run a clean operation.

The Australian casino sector has been in turmoil for years. Crown’s main rival Star Entertainment has also found itself under pressure from regulators to improve its practices or face losing licenses.

Each of the firm’s three casinos is currently operating under strict conditions due to extensive historic transgressions. The remedial efforts have proven costly to the company, resulting in huge fines and generating a loss of almost AU$200m (US$131m) for the 2023 financial year. The ongoing cost of living crisis has also led to declining interest from patrons.