Escalante Secures Full Ownership of Virtual Gaming Worlds in $2.1B Buyout

Escalante Moves to Fully Own Virtual Gaming Worlds

Laurence Escalante, the founder of Virtual Gaming Worlds (VGW), is poised to become the sole owner of the sweepstakes company following shareholder approval of his $2.1 billion takeover bid. This acquisition will transition VGW from a publicly traded company to a private entity.

Shareholders Endorse Escalante’s Acquisition Proposal

VGW, recognized for its popular platforms including Chumba Casino, Global Poker, and Luckyland Slots, has established itself as a leading sweepstakes operator in the United States despite some regulatory challenges. Laurence Escalante, who is also the company’s CEO and majority stakeholder, has been working to acquire the remaining shares of VGW.

After unsuccessful attempts earlier in the year, Escalante presented a final offer of approximately AUD 3.2 billion (around $2.1 billion) in June. On August 1, the minority shareholders approved this proposal, meeting the required threshold of at least 75% consent with an overwhelming 91% voting in favor.

This approval marks a significant milestone for Escalante, who had reportedly grown weary of prolonged negotiations and shareholder disagreements about the company’s future direction. With the deal moving forward, the full ownership transfer is expected to be completed by August 20.

Following the acquisition, Escalante is considering relocating the business operations to Guernsey while maintaining its headquarters in Australia.

Regulatory Challenges Confront VGW

Despite its expansion, VGW faces ongoing regulatory scrutiny, particularly in multiple U.S. states where authorities have issued cease-and-desist orders against sweepstakes operators. The rapid popularity of this gaming model has drawn criticism from regulators and tribal casino operators alike, who argue that sweepstakes companies exploit loopholes to provide unlicensed online gambling.

In response to mounting legal pressures, VGW updated its terms of service in mid-July to introduce a new tax policy on Gold Coins, its in-game virtual currency used across various platforms.

Moreover, at the end of July, VGW decided to discontinue its Sweeps Coins offering in Mississippi and New Jersey. Players holding Sweeps Coins in these states have until September 4 to redeem their balances before the service ends.