Tabcorp has announced that its chief executive and managing director, Adam Rytenskild, has resigned and stepped down immediately, following an investigation by an external law firm into his workplace conduct.
What the board said
According to the company's announcement, the investigation concluded that Rytenskild used "inappropriate and offensive language" in the workplace. The board said it considered the language inconsistent with his continued leadership of the organisation. The name of the law firm and the full findings of the investigation were not disclosed in the source material.
The board said Rytenskild will receive only the termination payments required by law and under his contract. It said he will forfeit all unvested short-term and long-term incentives, estimated to be worth up to $10 million, and his annual salary of more than $2 million (about US$1.32 million) ends with his departure. The exact amount of any termination payment was not stated.
Board chair Bruce Akhurst said the board regretted that the employment had ended this way. He acknowledged Rytenskild's commitment to Tabcorp's growth over more than two decades and his contribution to the company's transformation.
"I don't recall making the alleged comment and it's not language I would usually use, but I have regrettably agreed to resign," Rytenskild said, according to the report.
The allegation
The company's announcement did not set out the specific words at issue. The Sydney Morning Herald, as cited by Casino.org, reported that Rytenskild was overheard making a sexual remark about an official working at a gaming regulatory office. According to that report, the Tabcorp employee who made the complaint said the CEO suggested he would perform a sexual act on the female government official if she helped the company obtain a favourable ruling.
These details come from press reporting of the complainant's account, not from Tabcorp's statement. Rytenskild has said he has no recollection of the incident. The identity of the official, the regulator involved and the ruling in question were not identified in the source material. Nothing in the source indicates that any regulatory decision was affected.
Leadership and market reaction
Rytenskild had served in executive roles at Tabcorp for more than 20 years and was appointed CEO and managing director in 2022, after the company spun off its lottery business. Tabcorp shares, listed on the Australian Securities Exchange, fell 2.5 per cent following the news.
Akhurst has agreed to take on the duties of the CEO position while a permanent successor is sought. Tabcorp has engaged Sydney-based Maritana Partners to run a global search. The board said the departure will not affect the company's strategic direction, stating it has "the depth and capability across the executive and the senior leadership team to continue our transformation".
The resignation comes less than three months after Tabcorp secured a 20-year extension of the sole wagering and betting licence in Victoria, beating a bid from rival Sportsbet to retain its position in retail betting. At the time, Rytenskild described the outcome as "momentous" and positive for shareholders, the Victorian Government and industry stakeholders.
Context
Tabcorp's core brands are TAB, a multichannel wagering brand; Sky Racing and Sky Sports Radio broadcasting; and Max, a business-to-business gaming management platform. Its activities are licensed wagering and sit apart from online casino services, which are prohibited for Australian players under the Interactive Gambling Act 2001.