Former Tabcorp boss launches action against wagering giant after sudden exit

Former Tabcorp chief Adam Rytenskild is taking the wagering giant to the workplace tribunal five months after he departed following an alleged comment of a sexual nature about a female regulatory official.

Rytenskild agreed to resign from the ASX-listed bookmaker in March after an investigation conducted by an external law firm.

His tenure ended abruptly when allegations emerged about him making an inappropriate comment about a Victorian regulatory figure, suggesting he would perform a sex act on her if he could secure an extension to a lucrative licence in the state.

Adam Rytenskild stepped down as Tabcorp boss in March.Credit: Alex Ellinghausen

Rytenskild has now launched proceedings against Tabcorp at the Fair Work Commission, which is scheduled to hear a dispute between the parties in Sydney next week.

His application to the tribunal has been made under unfair dismissal legislation and is “to deal with contraventions involving dismissal”.

In resigning, he was paid out for a six-month notice period, which amounted to $750,000, half his base salary of $1.5 million.

By leaving in such a manner, he forfeited between $5 million and $10 million in unvested shares and options. He has also foregone bonuses that could have doubled his earnings to $3 million a year. Rytenskild is now challenging the terms of his exit.

Rytenskild, who has since been replaced as Tabcorp boss by former AFL chief Gillon McLachlan, did not return calls on Thursday. Tabcorp declined to comment.

The controversial remark was believed to have been made as a joke and not in the official’s presence but when brought to the attention of the Tabcorp board triggered an external investigation and ultimately cost Rytenskild his job.

He said at the time he didn’t remember making the comment but after facing the board agreed to walk.

“It’s not language I would usually use, but I have regrettably agreed to resign. Tabcorp has been an enormous part of my life for many years and I believe in the journey the company is on,” he said in a statement in March.

Tabcorp said at the time that the board “considered the language to be inconsistent with Mr Rytenskild’s continued leadership of the organisation”.

“The board regrets that Mr Rytenskild’s employment has ended in this way,” Tabcorp chairman Bruce Akhurst said in the company’s announcement to the ASX flagging the news.

Rytenskild had a problematic relationship with Racing NSW chief Peter V’landys, resulting in a $6 million Supreme Court dispute over a plunge in ticket sales and betting on The Kosciuszko horse race.

Racing NSW accused Tabcorp of not properly promoting the race, which is run on the biggest day of the spring racing calendar in Sydney and was designed as a slots race similar to The Everest, the richest race on turf held on the same day.

However, the two parties agreed to call off the court stoush last month, shortly before McLachlan was due to take over at Tabcorp, whose head office is in Melbourne.

Tabcorp’s share price has fallen from $1.15 almost a year ago to 55 cents on Thursday and the company has staged the latest round of redundancies over the last month.

The company continues to face headwinds in the gambling space with betting turnover on racing and sport trending downwards.

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