Three sources who were not authorised to speak publicly said the investigation was launched two weeks ago after the board received a complaint from a staff member which alleged Rytenskild had made a sexual comment about an official working at a gambling regulator.
Two sources said the comment was in reference to a looming decision that would affect the profitability of the business. The sources said Rytenskild said he would perform a sexual act on the regulator if the decision went in the company’s favour.
“I do not recall making the alleged comment,and it’s not language I would usually use,but I have regrettably agreed to resign,” Rytenskild said on Thursday.
The investigation was launched this month after the Tabcorp board received a complaint that Rytenskild had spoken offensively about a person who does not work at the company.
“The Tabcorp board became aware of inappropriate and offensive language used by Rytenskild in the workplace. The board considered the language to be inconsistent with Rytenskild’s continued leadership of the organisation,” the group told the Australian Securities Exchange on Thursday.
Tabcorp declined to comment on Thursday night. Rytenskild could not be contacted.
The group confirmed Rytenskild would “receive only the termination payments required by law” and would forfeit his unvested short-term and long-term bonuses.