Ex-Virgin Australia boss John Borghetti takes top chair at Crown Resorts

Former Virgin Australia chief executive John Borghetti will ascend to the throne atop Crown Resorts as the upmarket casino and hotel giant continues its transformation agenda across its WA, NSW and Victorian operations.

Mr Borghetti will take over as chair on July 1 and replace US-based William McBeath, who on Tuesday announced he would step back from the top job but remain on the board as an independent non-executive director.

Mr McBeath was brought in by Blackstone after the private equity behemoth paid $8.9 billion for then-listed Crown in mid-2022 to take it back into private hands.

The purchase delivered a $3.3b windfall for majority stakeholder James Packer and followed a tumultuous few years for the business which was tarnished by multiple damning government inquires that included explosive revelations it facilitated money laundering, worked with junket groups linked to organised crime and endangered staff in China.

Under the international gaming, tourism and hospitality experience of Mr McBeath, Crown has worked to convince government regulators that it now has comprehensive processes in place to ensure safe gaming and to keep its casino licences at Barangaroo in Sydney and its flagship Melbourne waterside complex.

“Now is the appropriate time to appoint an Australian-based chair who will continue Crown’s focus on transformation, regulatory compliance, and safe and sustainable future growth,” Mr McBeath said.

“I am delighted that John Borghetti will continue this critical work as chair and lead the Crown Resorts board in its strategic development of Crown’s businesses in Victoria, New South Wales, and Western Australia, working constructively with government and regulators.”

Mr Borghetti — who was brought in to chair Crown Sydney as part of Blackstone’s clean sweep as the very top of the company — said the board’s priority would remain on compliant, safe and profitable operations “while ensuring we position the business for future growth”.

“I look forward to continuing the transformation of Crown Resorts, ensuring the company exceeds the expectations of all its stakeholders, including government, regulators, guests and team members,” he said.

The change at the top comes in the wake of April’s decision by Crown to cut almost 1000 jobs from its 20,000-strong workforce across the country as reduced foreign tourism, gambling restrictions in Sydney and Melbourne and a sharp decline in local workers hurt its operations.

Most of the losses were made on the east coast, but The West Australian understands about 71 people took voluntary redundancies at its Burwood complex in Perth.

Mr Borghetti rise to the chair also comes just months after Crown was given the all clear to retain its gaming licences in Melbourne and Sydney.

Victoria’s watchdog in March gave Crown Melbourne the nod following a two-year review.

Victorian Gambling and Casino Control Commissioner Fran Thorn said the full commission decided Crown Melbourne had addressed the failings identified by a 2021 royal commission.

She said the inquiry detailed how the casino had breached its legal, social and moral obligations, resulting in illegal activities, tax avoidance, money laundering, criminal associations, and significant harm to vulnerable community members, ultimately finding Crown Melbourne unsuitable to hold its casino Licence.

Ms Thorn said scrutiny of the gambling industry and casino operators was now higher and the commission considered the issues identified had been “comprehensively” addressed.

A month later, the NSW Independent Casino Commission found Crown Sydney was suitable to retain its casino licence after nearly three years of intensive remediation.

The watchdog said Crown had “fundamentally reformed its business” and “in addition to proving it can run the casino lawfully, Crown has remediated its business in other meaningful ways such as building a culture of transparency and accountability across its integrated resort”.

Crown Perth is still under an extra layer of WA Government oversight in the form of independent monitor, former WA Police assistant commissioner Paul Steel.