The disgraceful 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 his colleagues was directed at Annette Kimmitt, who is the chief executive of the Victorian Gambling and Casino Control Commission (VGCCC).
“He said it in a meeting and three of the people in it were subsequently boned, then they complained afterwards,” a source told Daily Mail Australia.
Ms Kimmitt was not present, but it is understood the regulator was informed of the comment and subsequently contacted Tabcorp’s board, which late last year commissioned lawyers to investigate the claim.
Rytenskild, 52, had a $2 million-a-year contract with a $10 million bonus, but on Thursday resigned with immediate effect from his position as chief executive over the use of ‘inappropriate and offensive’ language at work.
It followed Tabcorp’s board deciding the language allegedly used was ‘inconsistent’ with his continued leadership.
Rytenskild allegedly called the woman a ‘useless c***’, ‘or words very close to that effect’ in front of a number of people. The Australian reported.
Adam Rytenskild (pictured) has been forced to resign due to allegations of inappropriate and offensive language
Sources have said Mr Rytenskild’s alleged sexist comment was aimed at Victoria’s gaming regulator chief executive Annette Kimmitt (pictured)
Ms Kimmitt declined to comment when contacted by Daily Mail Australia on Friday night.
VGCCC chairman Fran Thorn said the Commission recognized Mr Rytenskild’s resignation following comments he allegedly made about a regulatory official, but would not confirm who it was.
“The Commission will continue to regulate as a fierce advocate in the public interest, ensuring the integrity, safety and fairness of the gaming industry,” she said.
‘I am proud to be chairman of an organization that fights for strong, female leadership and a gender-inclusive, respectful workplace culture.’
Rytenskild has said he does not recall making the alleged comment.
Despite spending almost 24 years with the gaming giant, he will only receive a termination payment and has forfeited any bonuses.
His resignation has cost him up to $10 million in unvested stock and options.
Tabcorp engaged external lawyers to investigate the allegations about a fortnight ago.
The company’s board decided to terminate his employment before Mr Rytenskild offered his resignation at an emergency meeting between the two parties on Wednesday.
“Tabcorp expects its executives to uphold the company’s values at all times and will not hesitate to take steps to uphold expected standards of conduct,” a company statement read.
‘To protect the privacy of those involved, Tabcorp does not intend to make any further comment in relation to the conduct.’
Tabcorp shares were at 72c on Friday, down 5pc.
Rytenskild had been in the top job for almost two years.
Tabcorp last December beat Sportsbet to secure the rights to be the sole operator of retail betting in Victoria’s TABs, pubs and clubs in an $860 million deal.
Adam Rytenskild (pictured) was in the top job for almost two years
“I have no recollection of making the alleged comment and it is not language I would normally use, but I have regrettably agreed to resign,” he said in the Tabcorp statement.
‘Tabcorp has been a huge part of my life for many years and I believe in the journey the company is on.’
Tabcorp chairman Bruce Akhurst will step into the vacant CEO and managing director position until replacements are found.
“The board regrets that Mr Rytenskild’s employment has been terminated in this manner,” Mr Akhurst said.
“(It) recognizes his commitment to Tabcorp’s growth over more than two decades, including the last two years as MD and CEO, and his contribution to the transformation of the company.”
Hunter Green Institutional Broking director Charlie Green said Tabcorp could already have been looking to get Mr Rytenskild out and bring in fresh management.
“I think Adam was a dead man who walked and they have mature succession plans coming up,” he shared The courier post.
Senior executives at Entain, the company that owns Ladbrokes Australia, are apparently being considered for the role.
Tabcorp has a large bricks-and-mortar footprint, which requires them 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 on a level playing field, the company is still considered something of a dinosaur that could struggle to keep up with nimble competitors that have made the most of websites and apps to secure players’ money during the cost-of-living crisis.
Tabcorp’s board decided that the language allegedly used by Adam Rytenskild was ‘inconsistent’ with his continued leadership.
Sir. Rytenskild started flipping burgers at a Mobil service station as a teenager and became a father at the age of 19 before joining Tabcorp in 2000.
He worked his way up to become an executive in 2010 and became CEO when Tabcorp demerged its lottery business in May 2022.
“Honestly, it’s a bit of a mouthful, but it’s true for me,” Rytenskild told The Australian Financial Review after his appointment to the top job.
‘I really have a ‘no dickhead policy’. I think that is important’.
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