March 15 (Reuters) – Australian bookmaker Tabcorp’s (TAH.AX), opens new tab CEO stepped down after a company probe over allegations that he used “inappropriate” comments about a female regulatory official, Victoria’s gambling and casino regulator said on Friday.
The racing and wagering firm on Thursday said its chief executive Adam Rytenskild resigned after its board became aware of him using “offensive” and “inappropriate” language at the workplace.
Shares of the firm slumped as much as 7.2% to A$0.71 apiece. They have plunged over 9.5% during the week and are set for their worst week since March 2020.
“The resignation hasn’t done the Tabcorp share price any favours today, with the stock taking a hit with investors uncertain about the leadership repercussions,” Tim Waterer, chief market analyst at trading firm KCM Trade, said.
The gambling and casino regulator of the Australian state of Victoria, which oversees Tabcorp’s operations in the state, confirmed it had acknowledged the resignation.
“The Commission acknowledges the resignation of Tabcorp’s CEO following allegations of inappropriate comments made about a female regulatory official,” Victorian Gambling and Casino Control Commission Chair Fran Thorn said.
The outgoing CEO said on Thursday that he did not recall making the alleged comment, according to a statement from the company.
“It’s not language I would usually use, but I have regrettably agreed to resign,” Rytenskild said.
Tabcorp did not immediately respond to a Reuters request for additional comments on the allegations and the probe.
The firm did not specify what the language was and added that it would not be making any further comment in relation to the conduct.
The reasons behind the resignation have bruised the share price, KCM Trade’s Waterer said, flagging concerns over a potential top leadership vacuum.
Rytenskild was appointed CEO in June 2022 and has served with the wagering firm for over two decades.
