VGW Shareholders to Vote on Final Buyout Offer from Escalante

Laurence Escalante is making a final push to take complete control of Virtual Gaming Worlds (VGW). Through his private investment firm Lance East Office, he has made what he calls his ultimate offer—$3.2 billion to buy out the remaining 30% stake from minority shareholders, pricing shares at $5.05 each.

Good to know

• Shareholders will vote on the offer August 1.
• Offer must secure 75% approval to proceed.
• VGW faces lawsuits in multiple U.S. states.

The Federal Court has approved moving forward with the proposed buyout, clearing the way for shareholders to vote. The deal requires support from 75% of shareholders to pass. An earlier offer of $3.50 per share failed to gain traction, and a follow-up bid at $4.00 also did not move forward. Now, with the backing of Kroll, an independent expert, Escalante’s final offer is considered fair. It falls within VGW’s assessed value range of $4.53 to $5.63 per share.

VGW runs popular sweepstakes-based gaming platforms such as Chumba Casino, Global Poker, and Luckyland Slots. Though based in Australia, the company earns nearly all its revenue from U.S. users. That market, however, brings regulatory pressure. VGW is currently facing legal challenges in California, Mississippi, and Ohio. It is also dealing with a trademark dispute in Delaware.

Despite these legal concerns, VGW reported strong financials in the first half of its current fiscal year. Revenue hit $3.51 billion and profits reached $301 million. The company projects full-year profit to land between $555 million and $570 million, marking growth over the $496 million posted the year prior.

Legal pressure and market shifts fuel buyout motive

Escalante has made it clear that his offer comes at a time when VGW needs to adapt. He told shareholders that rising competition and legal uncertainty make the business climate more difficult and less suited for a public listing. Taking VGW private, he argues, is the best way to handle the risks and keep control over its direction.

The proposed buyout would be carried out through Ocean Bidco Limited, a Guernsey-based company set up by Lance East Office. If successful, VGW will move under this offshore holding, possibly reducing oversight by Australian financial regulators.

Past tensions between the company and shareholders have surfaced, including private disputes and disagreements about strategy. However, the process now has a formal structure. Independent director Mike Symons confirmed that no better offers have been presented and assured stakeholders of the deal’s credibility.

With the vote approaching on August 1, shareholders must now decide whether to cash out at a premium or stay in as VGW shifts toward full control under its founder.

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