Tabcorp Holdings faces a lawsuit by former CEO Adam Rytenskild, who has launched proceedings against the ASX-listed gambling giant over the circumstances of his abrupt departure in 2023.

Rytenskild has filed a lawsuit in the Federal Court, seeking internal documents related to board-level discussions on “plans to replace him” as Chief Executive. Central to the case is a probe into whether Racing NSW Chief Peter V’landys had any involvement in succession planning at Tabcorp — a claim both parties deny.

The fallout stems from a March 2023 incident in which Rytenskild allegedly made crude and inappropriate comments during high-stakes negotiations with the Victorian Gambling and Casino Control Commission (VGCCC) over a AU$860m (circa €550m), 20-year wagering licence. According to reports, he suggested he would perform sexual favours to a female officer of the VGCCC  to win the deal — remarks he claims he does not recall making.

The VGCCC, led by Chairwoman Fran Thorn, lodged a formal complaint. Within hours, Rytenskild resigned as CEO of Tabcorp, though he cited that he never made such remarks. Rytenskild believes he was forced out under duress and unlawfully dismissed as Tabcorp insists he left voluntarily.

The case has widened to include scrutiny of then-chairman Bruce Akhurst, with Rytenskild’s legal team demanding evidence of Akhurst’s role in the events leading to his ousting. Akhurst, who became chairman in 2022 following the demerger of Tabcorp and Tatts, stepped down in August 2024, shortly after the group posted a AU$1.4bn (-€850m) statutory loss for the 2023/24 financial year.

His resignation came amid investor outrage and tabloid headlines reporting “sexist and barbaric” remarks allegedly made by Tabcorp board members. 

Despite the media storm, Tabcorp points to Akhurst’s statement made to Australian outlets that he had “acted appropriately at all times” and was stepping down “in the best interests of the company to allow a fresh chapter to begin.” As such Tabcorp maintains that Akhurst’s departure was by mutual agreement.

Following Akhurst’s resignation, the Tabcorp board initiated a year-long executive search to identify new leadership for the company. After an extensive recruitment process, the board announced in June 2024 that it had appointed Gillon McLachlan, former Chief Executive of the Australian Football League (AFL), as Tabcorp’s next CEO. 

McLachlan began his tenure in January 2025, with the company positioning the leadership change as a cornerstone of its long-term transformation strategy.

Akhurst had been on a AU$2m annual pay package, with eligibility for a AU$10m performance bonus linked to delivering outcomes from the 2022 demerger.

Since Akhurst’s exit, former AFL boss Gillon McLachlan has taken over as Tabcorp CEO, spearheading a wide-reaching leadership overhaul in which key objectives are to elevate the Victoria wagering contract and relaunch Tabcorp digital offering. Meanwhile, Brett Chenoweth, who replaced Akhurst as chairman, is set to present a new long-term leadership vision on 27 August, focused on rebuilding trust and performance at board level.