VGW Founder And CEO Laurence Escalante Resigns

Virtual Gaming Worlds has entered a new leadership phase after Laurence Escalante resigned as CEO, executive chairman, and founder. The Perth based social gaming group said Mats Johnson will remain acting CEO while a global search begins for a permanent replacement.

Escalante had already stepped away from daily management in January after police in Western Australia charged him over alleged family violence and drug offences. He denies the allegations and intends to defend the charges.

Good to know

• Mats Johnson already led VGW on an acting basis before the resignation.
• Escalante founded VGW 16 years ago and later took the company private through his family office.
• VGW operates in the social gaming and sweepstakes casino space, a sector that faces a tougher US regulatory climate.

VGW Hands Control To Mats Johnson

Johnson now has the job of keeping VGW stable while the board looks for a long term CEO. That task comes at a delicate point for one of Australia biggest private gaming companies.

VGW built its US business around social casino and sweepstakes style products, including Chumba Casino. The model lets players use virtual coins, with sweepstakes mechanics used for prize redemption in some markets. Operators in that category have faced more attention from US lawmakers, regulators, and courts as states review whether these products fit existing gambling laws.

VGW chose a familiar face for the interim role rather than an outside emergency hire. Johnson previously served as a senior executive at the company and took over acting CEO duties when Escalante went on leave.

“Laurence started VGW 16 years ago and grew it from an innovative idea in Perth into one of Australia’s largest unlisted businesses and overseas success stories,” said Mats Johnson, who will serve as acting CEO, having previously served as a senior executive. “He pioneered a new social gaming category that is now a major market in the U.S., the largest consumer and gaming market in the world, delivering world-class entertainment to millions of players.

“We thank Laurence for these and many other achievements and contributions at VGW, and for the confidence he is showing in us – and all our 1,300 team members – to continue VGW’s successes in the future.”

Legal Case Ends Formal Leadership Role

Escalante, 44, founded VGW in Perth and turned it into a large online gaming business with a major US customer base. Before the company went private, he owned more than 70% of VGW shares. His family office later completed a deal for the rest of the business.

The resignation follows months of separation from management. Reports said police accused Escalante of entering an ex partner home, assaulting her, damaging property, and taking jewelry. Separate drug related allegations also formed part of the case. Escalante has denied the claims.

For VGW, the leadership issue now sits alongside a wider market question. Sweepstakes casinos have grown fast in the US, but several states have challenged or reviewed the category. That makes clear management, compliance, and licensing strategy more important for any operator that relies on the model.

VGW said Johnson will stay in charge during the search process. The company has not named a deadline for appointing a permanent CEO.

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