Tabcorp CEO Steps Down Following Inappropriate Language Allegations

Adam Rytenskild, the chief executive of Tabcorp, has stepped down in the wake of an investigation into allegations of inappropriate and offensive language usage.

Mr. Rytenskild tendered his resignation after the board came across these allegations. Although he doesn’t recall making these remarks, he agreed to step down, expressing regret.

“This is not the type of language I’d generally use, but I’ve unfortunately agreed to step down. Tabcorp has been a massive part of my life for many years, and I believe in the journey the company is taking,” Rytenskild explained.

Tabcorp’s chairman, Bruce Akhurst, will assume the role of executive chairman until a suitable successor for Mr. Rytenskild is found. The search is currently being conducted by Maritana Partners.

Mr. Rytenskild’s departure has been met with regret by the board, acknowledging his commitment to Tabcorp’s growth over more than two decades, including his time as the MD & CEO and his contribution to the company’s transformation.

“The board regrets the way Mr. Rytenskild’s employment has ended and acknowledges his commitment to Tabcorp’s growth over more than two decades, including the last two years as MD & CEO and his contribution to the transformation of the company,” said Mr. Akhurst.

According to sources familiar with the investigation who are not authorized to speak publicly about the matter, the board received a complaint and commissioned an external law firm to evaluate the claim. The complaint was lodged within the last two weeks.

As a result of his resignation, Mr. Rytenskild will lose all incentive payments, which could be valued between $5 million and $10 million. Tabcorp chose not to comment on the allegations.

Despite Mr. Rytenskild’s departure, Mr. Akhurst assured that it would not affect the company’s strategy.

“We have the depth and capability across the executive and the senior leadership team to continue our transformation,” he said.

Mr. Rytenskild has been an executive at the company since 2010. He was appointed as the chief executive of Tabcorp when it separated its lotteries business into a separate entity in 2022.

During his time as CEO, Mr. Rytenskild attempted to transition Tabcorp from a retail wagering operation into a digital bookmaker. Despite the company’s monopoly of betting stores in NSW, Queensland, and Victoria, it lost significant market share to international bookmakers like Sportsbet and Entain, which have drawn younger customers who place bets on mobile phone apps.

Mr. Rytenskild successfully persuaded governments in Victoria and Queensland to allow it to pay the same amount of tax as its online competitors. He secured an $860 million two-decade extension of a Victorian license for retail wagering and betting in pubs last year.

Tabcorp announced a $637 million loss for the six months ending December 31, largely due to a $732 million cash impairment related to tax rates paid in NSW and South Australia. Revenue fell 5% to $1.2 billion, and group earnings dropped 14% to $170 million, reflecting the broader challenges facing the wagering market.

Tabcorp shares closed at 76¢ on Thursday, down 2.6%.