In a surprise development, Tabcorp CEO Adam Rytenskild has stepped down amid allegations that he made sexual comments to a female regulator from the Victorian Gambling and Casino Control Commission (VGCCC) last year while the company was attempting to secure a valuable license extension in the state.
The news first broke March 14, but Rytenskild reportedly announced his resignation the previous night following a late meeting with the company’s board of directors.
According to anonymous sources close to the matter quoted by the Sydney Morning Herald, a company staffer alerted the board to Rytenskild’s comments earlier in March, which prompted the company to launch a third-party investigation.
The comments were said to have come as Tabcorp was in the midst of negotiating a AU$860 million (US$565.5 million), 20-year extension to its exclusive retail betting license in the state—the former CEO reportedly told the VGCCC staff member at the time that he would perform sexual favors for her should the license be granted, which it eventually was last December.
Rytenskild, who had served as CEO since 2022 when Tabcorp demerged its lottery operations and had been with the company for more than 20 years overall, said in a statement that he did recall making the comment, and that it is “not language I would usually use,” but ultimately agreed to accept his resignation.
Tabcorp declined to comment on the matter other than to confirm that the outgoing executive would only receive the termination benefits entitled by law, and that his short- and long-term bonuses would be forfeited.
According to the Herald, this means the total amount being surrendered is somewhere between AU$5-$10 million (US$3.28-$6.57 million).
Current Chairman Bruce Akhurst will reportedly step in to replace Rytenskild on an interim basis, and headhunters Maritana Partners will conduct a global search for his replacement.
Akhurst said in a statement that he and the rest of the board “regrets that Rytenskild’s employment has ended in this way.”
Overall, Rytenskild’s tenure as chief executive featured wins and losses. In addition to the aforementioned license extension, the company was awarded favorable tax breaks in Victoria and Queensland and was in discussions to do the same in New South Wales. It was also said to have lost considerable market share to online-focused bookmakers such as Entain and Sportsbet.
At last year’s general meeting, nearly a third of Tabcorp shareholders voted against Rytenskild’s compensation package for 2024, saying that it was above the average for executives at other ASX 200 companies that were performing better.
