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Casinos Austria president steps down amid nepotism allegations and governance concerns

A high-profile exit rocks Austria's gambling sector. Why did ÖBAG force out Casinos Austria's supervisory board president months before his term ended?

The image shows an old stock certificate with a black border and a red stamp on it. The text on the...
The image shows an old stock certificate with a black border and a red stamp on it. The text on the certificate reads "Casino im Frankfurter Hof Mainz".

Casinos Austria president steps down amid nepotism allegations and governance concerns

Wolfgang Hesoun will leave his role as president of the Casinos Austria supervisory board earlier than planned. The Austrian state holding company, ÖBAG, announced the decision on Thursday. His departure follows allegations of favouritism and improper influence over staff appointments.

Hesoun's term was set to run until March, having started in late 2020. But ÖBAG confirmed it would not be renewed. The official reason given was a loss of confidence due to accusations of nepotism and questionable hiring practices.

ÖBAG cited concerns over Hesoun's alleged role in promoting relatives to senior positions within the company. The state-owned group holds a one-third stake in Casinos Austria on behalf of the Austrian government.

The decision marks a sudden end to Hesoun's leadership at the gambling group. His exit will take effect in October 2024, months before his original term was due to conclude.

The early departure leaves Casinos Austria without its supervisory board president. ÖBAG's move reflects broader concerns about governance within the company. A replacement for Hesoun has not yet been named.

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