Laurence Escalante Set To Buyout Investors In VGW
Laurence Escalante is poised to reclaim full control of Virtual Gaming Worlds (VGW), the innovative company behind leading platforms like Chumba Casino, Luckyland Slots, and Global Poker. As the founder of VGW in 2010, Escalante has strategically guided the company into the spotlight of the sweepstakes casino market, holding a current 70% stake following its opening to investors in 2016.
The proposed offer to minority shareholders stands at AU$ 5.05 per share, allowing options for cash, shares in a new holding company (BidCo), or a combination of both. This valuation positions VGW at a substantial AU$ 3.2 billion (approximately $2 billion), making it a significant player in the gambling sector. Shareholder approval is pending, but the transaction is anticipated to conclude by August 2025, subject to necessary regulatory and court approvals.
Strategic Expansion into the U.S. Market
The pivotal decision to invite investors in 2016 catalyzed VGW’s expansion, particularly within the lucrative U.S. market. By 2020, VGW commanded an impressive 90% share of the sweepstakes market in the country; however, this dominance has recently decreased to around 50% due to rising competition and regulatory challenges.
VGW’s flagship platform, Chumba Casino, currently engages over 1 million daily active users and reported a record revenue of AU$ 6.1 billion (approximately $4.15 billion) for FY2024, showcasing a net profit of AU$ 492 million (around $335 million). This remarkable growth trajectory since entering the American market—in which revenue was only AU$ 379 million in 2018—highlights the company’s adaptability and innovation in a rapidly evolving landscape.
Escalante Voices Frustration with Investors
Escalante’s desire to regain complete control stems from the pressures of financial reporting to investors. He has expressed frustration regarding investor demands for enhanced transparency, as articulated in a recent Telegram update. “We share what we choose to share and avoid legal complications and unequal information. Don’t trust us, don’t stay shareholders,” he remarked, reflecting his stance against the increasing scrutiny and expectations.
His candid comments have also included personal grievances about what he describes as “vindictive” rumors that have circulated concerning his life, indicating a tension between personal and corporate challenges that he faces in a high-stakes domain.
Navigating Regulatory Challenges in the U.S.
The path ahead for VGW is complicated by stringent state regulations. Recently, the company withdrew from New York—a strategic move that followed its exit from Delaware in April—leaving it without operations in 13 states. Several other states are actively crafting legislation to restrict the dual-currency model that is pivotal to sweepstakes casinos, with Montana emerging as the first state to explicitly prohibit such platforms.
Escalante is determined to leverage greater control over VGW to explore innovative avenues for growth in light of these challenges. The sweepstakes model has previously capitalized on legal loopholes to offer online casino experiences in regions where legislation has yet to catch up.
In a bid to advocate for the legality of social and sweepstakes casinos, VGW established the Social Gaming Leadership Alliance (SGLA). This initiative aims to exert pressure on state regulators, a role previously filled by the Social and Promotional Gaming Association (SPGA). Notably, VGW has chosen not to align with the SPGA, reflecting Escalante’s penchant for independent strategies that reaffirm his influence within the sweepstakes casino sector.
By taking decisive action to consolidate control and establishing an independent lobbying group, Escalante is signaling a commitment to reinforcing VGW’s leadership within a competitive and ever-evolving gambling landscape.
Adam Roarty is a seasoned writer with extensive experience in the gambling industry, having contributed to reputable platforms such as Oddschecker, CoinTelegraph, and Gambling Industry News. His insights delve into the dynamic betting landscape in the U.S., covering emerging stories in the realms of prediction markets, evolving legislation, and sweepstakes innovations.
