New Crown Resorts Boss Not Interested in Working With Junkets

Posted on: September 7, 2022, 07:19h. 

Last updated on: September 7, 2022, 09:43h.

Australian casino operator Crown Resorts has a new boss who’s wasting no time in changing how things are done at the popular resort. Ciarán Carruthers, in his first week as Crown’s CEO, has made it clear that working with junkets is a thing of the past.

Carruthers, who previously worked as part of Wynn Resorts’ Asian operations, knows the trouble junkets can bring. A Macau court told Wynn Macau last year that it was responsible for the six-figure debt its junket partner, Dore Entertainment, owed a gambler.

Before that, Wynn had already begun reducing its interaction with junkets. Carruthers is continuing in that direction as the new head of Crown.

Out With the Old

Carruthers, who was Wynn Macau’s CEO for five years, confirmed Crown’s position in an interview with Australian media this week. He told The Age that it’s time to usher in a new era of business.

The “old junket model” is dead, according to Carruthers. Now, instead of focusing extensively on wealthy Chinese high rollers, he says Crown wants to attract tourists from everywhere.

Carruthers also believes the new business model shouldn’t rely so heavily on gambling. Instead, he says, it should consider other factors, such as entertainment and lodging, that may attract travelers to the properties.

I think there’s probably been an overreliance on the Chinese tourists in Australia; they’ve been such an easy target for some of the casinos of the past. Though I have great confidence tourism will return as the international borders continue to open up, Crown will not be going down the path of the old junket model,” said new Crown CEO Carruthers.

Crown remains the subject of increased scrutiny in Australia for its previous practices. Money laundering, creative accounting, and operational mismanagement across the country led to its downfall. It also opened the door for Blackstone to come in and purchase its assets, and to tap Carruthers to be its leader.

The company’s lack of internal integrity, as well as that of Star Entertainment, led to the creation of new gaming regulators in Australia. These new bodies are watching Crown and Star closely to ensure they are fulfilling their promises to clean up their act.

Crown had already agreed to break up with junkets. This was part of its attempt to show regulators that it isn’t the same company as before.

Not Out of the Woods

As much as Crown wants to show that it has reformed, it’s still not getting everything right. A recent incident involving Wayne Carey and a white powder is a good example.

Carey, a former Australian Football League star and Hall of Famer, was at a Crown Perth gaming table last week. A bag of an unknown white substance fell out of his pocket and onto the table. Carey reacted quickly, telling casino personnel that the powder was only an anti-inflammatory.

That concluded any investigation, although Crown gave the former North Melbourne star a two-year ban. Because of the fallout, Carey said that he’s considering suing Crown.

Carey has a history of cocaine use, although he’s claimed he no longer consumes the drug. While Blanch would like to know what was in the bag, there is no longer any physical evidence police can investigate. As a result, any attempt to find out would only lead to a dead end.

If Crown wants to continue to show that it’s a reformed company, incidents like these aren’t helping.

Source: casino.org