Crown Resorts announced that John Borghetti the former Virgin Australia boss has been appointed as the new Chairman of the company with effect on 1 July.
Borghetti replaces William McBeath who will step down from his role as Chairman after assuming it in July 2022. McBeath continues to serve as Crown’s independent non-executive board member.
Borghetti is an experienced executive and has served as the chairman of Crown Sydney since mid-2022. He was appointed by Blackstone after the private equity giant acquired Crown for AU$8.87bn (PS4.63bn/EUR5.43bn/US$5.93bn).
He spent over 45 years in the aviation industry before this. He also served as the chief executive officer of Virgin Australia for 10 years, until March 2019.
Borghetti currently serves as a director at Balmoral Pastoral Investments, and is a member of O’Connell Street Associates. He has also served previously as a board member at Brisbane Airport Corporation and Alinta Energy.
He will continue to be the chair of Crown Sydney, even though he has taken on a wider role as chairman.
Borghetti focuses on safety, compliance and profit
Borghetti stated, “I am looking forward to the continued transformation of Crown.” This includes exceeding the expectations of the government, the regulators, the guests, and the team.
The board is focused on profitable, compliant and safe operations, while also ensuring that the company’s future growth will be positioned for success.
McBeath, who is leaving his position as chairman of the board after a year in office, also spoke about his tenure and supported Borghetti as Borghetti’s successor.
As chair, it was my responsibility to support and lead the Executive Leadership Team in delivering the regulatory reform program and cultural remediation for Crown Resorts to ensure suitability.
I am very proud of the fact that Crown Melbourne and Crown Sydney both retained their operating licenses during this period. Crown Perth has also made good progress with its remediation.
It is time for appointing an Australian chair. Crown will focus its efforts on the transformation of their business, compliance with regulatory requirements, as well as safe and sustainable growth in future.
I am pleased that John Borghetti, as the new Chair of Crown Resorts Board, will lead this important work and continue to develop Crown’s business in Victoria, New South Wales and Western Australia. He will also be working with Governments and Regulators in a constructive manner.
Crown retains New South Wales Victoria license
Crown received a big boost when it learned in April that its Sydney casino license could be retained. The appointment comes after three years intensive remediation work in the state.
The Bergin Report deemed Crown “unsuitable to operate” a casino in Sydney at Barangaroo, in February 2021. The New South Wales Casino Inquiry had found that its accounts and facilities were being used to launder money.
Crown was also implicated in the investigation for engaging with operators of junkets with connections to organized crime, without performing proper due diligence. It also put its employees in danger by promoting gambling in Mainland China.
Crown could not operate its casino within the dining and hotel building for patrons more than one year.
Crown was able to secure approval for operations in NSW about 16 months after Blackstone’s acquisition. Crown had to comply with all other rules in order for this permission to be granted.
The New South Wales Independent Casino Commission, which has been monitoring Crown’s activities since the permission was given, said that it is satisfied with Crown’s progress. It has therefore been permitted to keep its license.
Crown’s casino license in Victoria was allowed to be kept by the Victorian Gambling and Casino Control Commission (VGCCC) just a few weeks earlier. In March, the Victorian Gambling and Casino Control Commission ruled that Crown was eligible to have a license for its Melbourne casino.
Crown Casino, like New South Wales did the same after the Royal Commission on casino licenses. The VGCCC was satisfied with this progress and granted Crown an exemption.
