VGW Founder Escalante Wins Shareholder Vote for $3.2B Privatization Deal
Gambling billionaire Laurence Escalante has won shareholder approval to take his social gaming giant, Virtual Gaming Worlds (VGW), private in a $3.2 billion deal, according to a report from The Australian Financial Review. The move will see the company’s founder, who already owns 70% of VGW, take full control.

A Move Driven by Regulatory Strain and Frustration
The decision to go private comes as VGW faces “unprecedented strain” from US regulators. The company, which pioneered the use of a legal loophole to offer online casino-style games to millions of Americans through its popular Chumba Casino and Luckyland Slots brands, has recently been forced to exit several states.
Beyond the regulatory challenges, Escalante had also reportedly grown frustrated with the requirements of running a public unlisted company and dealing with his investor base. The privatization allows him to operate the company with more autonomy and less public scrutiny.
Under the terms of the deal, Escalante’s family office, Lance East Office, offered $5.05 per share to acquire the remaining shares he does not own. The proposal was overwhelmingly approved by minority shareholders, with 91% of the votes cast in favor of the “scheme of arrangement.”
While some shareholders reportedly felt the offer undervalued the highly profitable company, the deal will still deliver a multi-million dollar payday for hundreds of primarily West Australian investors.
A Controversial Path to Privatization
While the vote passed with ease, the process was not without controversy. According to The Australian Financial Review, investors were “rankled” by the revelation that Escalante had quietly set up a competing online casino, Kickr, through his private family office. The new venture is reportedly run by a former VGW executive.
Concerns were also raised about the independence of VGW’s board, adding another layer of complexity to the deal. Despite these issues, the vast majority of shareholders ultimately voted to accept the cash-out offer from the company’s founder.
The deal is not yet final and still requires approval from Australia’s Federal Court. If approved, the privatization is expected to be implemented on August 20. Escalante plans to re-incorporate VGW in the offshore tax haven of Guernsey, though the company’s main office will remain in Perth, Australia.
Recommended