Laurence Escalante, founder of sweepstakes casino giant Virtual Gaming Worlds (VGW), is planning to buy out the remaining 30% of the entertainment company he doesn’t already own. The deal would give him full control of the Australia-based business.
VGW has entered into a Scheme Implementation Deed (SID) with Ocean BidCo Limited (BidCo), an unlisted special purpose company established by Lance East Office (LEO), the family office of Escalante, for the acquisition by BidCo of all of the issued shares in VGW by way of a scheme of arrangement (Scheme).
Laurence Escalante Currently Owns About 70% Of All VGW Shares
VGW was first approached by LEO about a potential transaction in November 2024. Escalante and his entities currently own approximately 70% of all VGW shares.
“VGW is a fantastic business, and I thank all shareholders for their support in helping us build the company we have today. As the regulatory, competitive and economic landscape evolves, we face many new opportunities but also challenges and uncertainties,” Escalante said.
“For some time now, many VGW shareholders have asked how and when a liquidity event may arise, and the Scheme represents an efficient opportunity to allow those shareholders looking to monetize their investment for cash to do so. For those shareholders who decide to elect for cash consideration, I thank you for your support to this point.
“I also welcome any eligible shareholders who wish to continue an investment in VGW, and I look forward to welcoming you as shareholders of BidCo (which would become the new holding company) if the Scheme is implemented.”
VGW Operates Chumba Casino, Luckyland Slots, And Global Poker
Escalante’s three sweepstakes brands are Chumba Casino, LuckyLand Slots, and Global Poker. Financial reports show a revenue of $6.13 billion with a profit of $491.6 million for VGW for the year ending June 2024.
However, Escalante’s market share has declined since 2012, the same year when Chumba Casino first launched and marked a significant milestone for the sweepstakes gaming and social casino industries.
VGW has already taken the necessary action to enhance the legitimacy of its company and distance itself from unregulated gambling operators in the gaming industry.
In February, the company raised its minimum player age requirement from 18 to 21 for its sweepstakes sites. The policy change was made to help advance responsible gaming measures amid mounting regulatory pressure in several U.S. states.
VGW Established The Social Games Leadership Alliance
In addition, Escalante founded the Social Games Leadership Alliance (SGLA) last month, collaborating with other major sweepstakes brands like PLAYSTUDIOS, Yellow Social Interactive (Pulsz), ARB Interactive (Modo Casino), and B-Two Operations (McLuck, Hello Millions, Spin Blitz).
The SGLA’s main goal is to rebrand the sweepstakes vertical in a more positive light and potentially help influence lawmakers who may be open to regulation.
This news comes as VGW recently withdrew its brands from promotional play in New York state, a sizeable market that could see a full ban on sweepstakes gaming via Assembly Bill 6745 and/or Senate Bill 5935.
New York’s legislative session adjourns June 12.