Laurence Escalante, the founder of Virtual Gaming Worlds (VGW), is preparing to buy out minority shareholders and take full control of the company he started. The move comes amid rising regulatory pressure and internal disputes that have drawn public attention.
Good to know
- VGW is valued at around $3.2 billion in the planned buyout.
- Escalante already owns 70% of the company.
- VGW recently exited New York due to legal uncertainty.
Escalante launched VGW from a basement and built it into a $5 billion revenue business. Today, it operates major sweepstakes platforms like Chumba Casino, Luckyland Slots, and Global Poker. According to a report by the Financial Review, he now wants to own 100% of the company.
The buyout follows a series of challenges. VGW has faced scrutiny in the United States over how it operates its sweepstakes platforms. While it offers casino-style games, it avoids traditional gambling classification, which helps it bypass certain licensing and tax requirements. Critics argue that the model should be subject to standard gambling laws, while supporters say VGW operates within current legal frameworks.
Montana has already taken legal steps against companies like VGW, and other states may follow. In response, VGW has started pulling back. Most recently, it exited the New York and Delaware markets due to shifting regulatory conditions.
Internally, tensions have spilled into public view. Escalante has used social media multiple times to speak directly to critics and investors. On Telegram, he urged dissatisfied investors to sell their stakes, saying,
“There’s a reason we do what we do.”
He cited legal limitations under the Corporations Act as a reason the company cannot always speak openly. Earlier, in April, he used Instagram to push back on personal rumors he claimed were “destructive.”
Despite the noise, Escalante appears determined to take the company private and retain full authority over its future direction.
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