The shocking comment that cost Tabcorp boss Adam Rytenskild his $2 million-a-year job and a $10 million bonus package was reportedly aimed at a top female gaming regulator.
The highly offensive comment that cost Tabcorp CEO Adam Rytenskild his lucrative job was allegedly made about the woman who regulates Victoria’s gaming industry.
Daily Mail Australia has been informed by sources that the sexist comment he is accused of making in front of colleagues was directed at Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt.
“He said it at a meeting and three of the people in it were subsequently gored and they filed a complaint,” a source told Daily Mail Australia.
Ms Kimmitt was not present, but the regulator was reportedly informed of the comment and subsequently contacted Tabcorp’s board, who commissioned lawyers to investigate the claim late last year.
Mr. Rytenskild, 52, had a $2 million-a-year contract with a $10 million bonus, but resigned as CEO with immediate effect on Thursday, due to the use of ‘inappropriate and offensive’ language at work.
It followed that Tabcorp’s board decided that the language allegedly used was ‘inconsistent’ with its continued leadership.
Mr Rytenskild is said to have called the woman a ‘useless bastard’, ‘or words very close to that’, in front of a number of people. The Australian reported.
Adam Rytenskild (pictured) has been forced to resign over claims of inappropriate and offensive language
Sources have said Mr Rytenskild’s alleged sexist comment was directed at the CEO of Victoria’s gaming regulator Annette Kimmitt (pictured)
Ms Kimmitt declined to comment when contacted by Daily Mail Australia on Friday evening.
VGCCC chairman Fran Thorn said the Commission acknowledged Mr Rytenskild’s resignation following comments he allegedly made about a supervisory officer, but would not confirm who that was.
“The Commission will continue to regulate as a fierce advocate of the public interest, ensuring integrity, security and fairness in the gambling industry,” she said.
“I am proud to chair an organization that champions strong, female leadership and a gender-inclusive, respectful workplace culture.”
Mr Rytenskild has said he does not remember making the alleged comment.
Despite working at the gambling giant for almost 24 years, he will only receive severance pay and has forfeited all bonuses.
His resignation cost him up to $10 million in unvested stock and options.
Tabcorp engaged external lawyers about a fortnight ago to investigate the allegations.
The company’s board decided to terminate his employment before Mr Rytenskild tendered his resignation during an emergency meeting between the two parties on Wednesday.
“Tabcorp expects its leaders to uphold the company values at all times and will not hesitate to take action to uphold expected standards of conduct,” a company statement said.
‘To protect the privacy of those involved, Tabcorp does not intend to comment further on the conduct.’
Tabcorp shares were at 72c on Friday, down 5 per cent.
Mr Rytenskild had held the top job for less than two years.
Tabcorp beat Sportsbet in December last year to secure the rights to be the sole retail betting operator in Victoria’s TABs, pubs and clubs under an $860 million deal.
Adam Rytenskild (pictured) held the top job for just under two years
“I do not recall making the alleged comment and it is not language I would normally use, but I have unfortunately agreed to resign,” he said in Tabcorp’s statement.
“Tabcorp has been an important part of my life for years and I believe in the journey the company is on.”
Tabcorp chairman Bruce Akhurst will fill the vacant positions of managing director and CEO until replacements are found.
“The board regrets that Mr Rytenskild’s employment has ended in this way,” Mr Akhurst said.
‘[It] recognizes his commitment to the growth of Tabcorp for more than two decades, including the last two years as MD and CEO, and his contribution to the transformation of the company.”
Charlie Green, director of Hunter Green Institutional Broking, said Tabcorp could already have been looking to retire Mr Rytenskild and bring in new management.
“I truly believe Adam was a dead man and there are mature succession plans in the works,” he said The courier post.
Senior managers at Entain, the company that owns Ladbrokes Australia, are apparently being considered for the role.
Tabcorp has a large physical footprint, meaning they have to pay double the taxes and betting fees of strictly online bookmakers such as Ladbrokes and Sportsbet.
While Queensland and Victoria have made changes to level the playing field, other states have yet to follow suit.
Even with that level playing field, the company is still seen as something of a dinosaur that could struggle to keep pace with nimble competitors who have made the most of websites and apps to safeguard gamblers’ money under the crisis of cost of living.
Tabcorp’s board decided that the language Adam Rytenskild allegedly used was “inconsistent” with his continued leadership
Mr Rytenskild started flipping burgers at a Mobil gas station as a teenager and became a father at 19 before first joining Tabcorp in 2000.
He worked his way up to become a director in 2010 and became CEO when Tabcorp spun off its lottery business in May 2022.
“To be honest, this is a bit informal, but to me it’s true,” Mr Rytenskild told The Australian Financial Review after his appointment to the top job.
‘I really have a ‘no dickhead policy’. I think that’s important.’
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