Crown Resorts has announced a significant shift in its leadership dynamics with the appointment of John Borghetti, the former chief executive of Virgin Australia, as the new chairman. Borghetti will take over from William McBeath, who is stepping down after serving as chairman since July 2022. McBeath, however, will remain on the board as an independent non-executive director.
Borghetti, a seasoned executive with substantial experience in the aviation sector, has been serving as the chairman of Crown Sydney since mid-2022. His entry into the Crown Resorts leadership team followed the AU$8.87 billion acquisition of the company by Blackstone, a global private equity firm. Blackstone’s acquisition marked a new chapter for Crown Resorts, signifying a period of intense focus on regulatory compliance and transformation.
Before his involvement with Crown, Borghetti had a distinguished career spanning over 45 years in the aviation industry. He notably held the position of chief executive at Virgin Australia for a decade until March 2019. Borghetti’s extensive experience also includes directorial roles at Balmoral Pastoral Investments and membership in O’Connell Street Associates. His previous directorships include high-profile names such as Brisbane Airport Corporation, Alinta Energy, Coca-Cola Amatil, Energy Australia, and the Art Gallery of New South Wales.
Despite taking on the broader responsibilities of chairman, Borghetti will retain his role as the chair of Crown Sydney. In a statement reflecting on his new position, Borghetti expressed his enthusiasm for continuing the transformative journey at Crown Resorts. “I look forward to continuing the transformation of Crown,” he said. “This includes ensuring the company exceeds the expectations of all its stakeholders, including government, regulators, guests, and team members.” Borghetti emphasized that the board’s priority would remain focused on compliant, safe, and profitable operations, while also positioning the business for future growth.
Outgoing chairman McBeath shared his reflections on his tenure and expressed unwavering confidence in Borghetti’s capabilities to lead. McBeath highlighted the achievements of his term, particularly the extensive regulatory and cultural reform and remediation programs that were implemented.
. “I am proud that both Crown Melbourne and Crown Sydney have retained their licenses to operate during this time. Remediation work in Crown Perth is also well progressed,” McBeath said.
McBeath underscored that now was the appropriate time to appoint an Australian-based chair, who could continue Crown’s focus on transformation, regulatory compliance, and sustainable future growth. “I am delighted that John Borghetti will continue this critical work as Chair and lead the Crown Resorts Board in its strategic development,” he added, noting the importance of cooperation with government and regulators.
The leadership transition at Crown comes at a pivotal time for the company, especially after receiving a significant boost in April. Crown’s Sydney property was granted the permission to retain its casino license after nearly three years of stringent remediation efforts. The New South Wales Casino Inquiry had originally deemed Crown “unsuitable” to operate a casino at Barangaroo in Sydney in February 2021. This decision followed the Bergin report, which unveiled accusations of money laundering through Crown’s facilities and accounts.
The inquiry further found that Crown had engaged with junket operators linked to organized crime without adequate due diligence. These revelations resulted in the company being barred from operating a casino in its Barangaroo dining and hotel tower for more than a year.
However, following its acquisition by Blackstone and the extensive remediation undertaken, Crown secured the necessary approvals to operate in New South Wales in June of the following year, under strict monitoring conditions. The New South Wales Independent Casino Commission subsequently expressed its satisfaction with Crown’s progress, allowing the company to retain its license.
Crown also received another affirmation in Victoria shortly before the New South Wales decision. The Victorian Gambling and Casino Control Commission (VGCCC) ruled Crown suitable to hold a license for its Melbourne property, following widespread changes at the casino prompted by the Royal Commission into casino licenses. This progress was deemed sufficient for Crown to maintain its operational status.
Borghetti’s appointment is being seen as a promising development for Crown Resorts as the company continues to navigate and solidify its regulatory and operational frameworks across its properties in New South Wales, Victoria, and Western Australia. His proven leadership and extensive experience in managing large organizations are expected to drive Crown Resorts towards a stable and prosperous future.
