Escalante Eyes Full VGW Control with $3.2B Buyout
Laurence Escalante, the Perth tycoon behind Virtual Gaming Worlds, is gunning to own the whole company by buying out minority shareholders for $3.2 billion.
Going All In
Laurence Escalante, who founded Virtual Gaming Worlds (VGW) and holds 70% of its shares, wants the rest. He’s offering $5.05 per share to scoop up the remaining stakes, putting VGW’s value at $3.2 billion.
That’s a 106% premium over the last pre-IPO trade on PrimaryMarkets, or three times the company’s 2024 EBITDA plus cash. Shareholders can take the cash, minus any dividends, or swap for shares in Ocean BidCo, a shell company run by Escalante’s Lance East Office.
The swap could dodge capital gains taxes, but it’s a bet on VGW’s future under his sole grip. The board’s on board, but shareholders need to vote by August 2025, with the deal set to close by September 15 if conditions hold.
Escalante’s been at this before. Back in November 2024, his Lance East Office pitched $2.26 to $2.58 per share, but VGW’s independent board committee shot it down as too cheap. In January 2025, he upped the offer to $3.50-$4.00, then settled at $3.26, still not enough.
The committee argued each time that Escalante was lowballing VGW’s worth. Now, with $5.05 on the table, he’s hoping the third time’s the charm, though some shareholders are still grumbling about past rejections.
Regulatory Headaches
VGW’s sweepstakes model, powering brands like Chumba Casino, is hitting rough waters in the U.S. The company’s pulled out of New York by August 2025, citing murky regulations, and earlier ditched Connecticut after a cease-and-desist order in October 2024.
Nevada saw Global Poker shut down, and Delaware booted VGW in April 2025 after a probe found gaming law breaches. Critics say VGW’s model skates around consumer protections in states without clear online gambling rules. Escalante’s pushing back through the Social Gaming Leadership Alliance to lobby regulators, but the heat’s on.
Investor Bad Blood
Tensions with minority shareholders aren’t helping. Some have beef with VGW’s transparency and governance, and Escalante didn’t mince words in a private Telegram chat.
In a heated rant, he told investors to “get off my shareholder list” if they don’t trust him, widening the rift. Buying them out could let him call the shots without pushback, but it risks looking like a power grab.
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