Crown Resorts CEO Ciarán Carruthers is said to be under an internal investigation by the company over allegations he intervened to let some patrons who had been removed by security back into the casino at Crown Melbourne.
According to the Australian Financial Review, the investigation is looking into an incident last month in which Carruthers allegedly intervened to allow a patron back in after he was banned for a year for bringing a minor onto the casino floor. Another incident allegedly saw Carruthers allow a drunk patron to stay after being previously told to leave the premises.
The AFR made it clear these were allegations only, with a full investigation set to be conducted by an independent law firm. It also quoted a spokesperson as stating, “In accordance with Crown’s governance protocols, we have engaged external counsel to conduct an independent review of these matters. Until such time the review is complete, we are unable to comment further.”
According to the AFR, the investigation will also consider whether senior management should have their powers limited in certain instances that relate to player safety.
Carruthers, a former senior executive with Wynn Macau Ltd, was appointed as Crown Resorts CEO last year after US private equity giant Blackstone took Crown private. Being a Macau-based company, IAG has been familiar with Carruthers for over 10 years and given what we know about the remediation work he has been committed to at Crown, we find it astonishing that he would do anything to jeopardize that work.
Carruthers also finds himself in the unenviable situation of having to appease various internal and external stakeholders while also trying to establish a service culture that re-establishes Crown as a world-class entertainment venue. IAG also understands that Crown currently uses outsourced contractors for at least some of its security staff.
It remains to be seen if there is any validity to the allegations and if so, what the circumstances were surrounding them.
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