VGW’s Laurence Escalante Lashes Out at Investors in Fiery Telegram Rant
Laurence Escalante, VGW’s billionaire CEO, unleashed a profanity-laced tirade on Telegram, slamming investors critical of the company’s transparency.
A Heated Outburst Sparks Controversy
Laurence Escalante, the 42-year-old founder of Virtual Gaming Worlds (VGW), ignited a firestorm, with an expletive-filled rant on a Telegram investor chat.
Frustrated by investor critiques over VGW’s transparency, Escalante told doubters to “sell their shares” and accused them of “talking shit.”
He singled out analyst Ricky Saini, snapping, “Shut the fuck up, you have no idea what you’re talking about.” Escalante defended VGW’s selective disclosures, citing Australia’s Corporations Act to avoid legal issues.
VGW later apologized, noting the Telegram group isn’t company-run. This marks Escalante’s second public outburst, following an Instagram tirade against “destructive rumors” about his personal life.
Investor Tensions Fuel the Fire
The outburst stems from growing investor unrest. VGW’s shift from biannual to annual financial reporting left some shareholders feeling “in the dark.”.
The company justified the change as a way to boost efficiency and protect trade secrets in a competitive $3 billion U.S. sweepstakes market.
Investors also criticized VGW’s delay in launching an online investor hub for better access to data.
Regulatory Heat Tests VGW’s Model
VGW, behind brands like Chumba Casino and Luckyland Slots, thrives on a sweepstakes model using virtual “Gold Coins” and redeemable “Sweeps Coins.”
This legal loophole lets it operate in U.S. states where online gambling is banned. Yet, regulators and tribal casinos call it a “gray market,” with states like Delaware, Connecticut, and Michigan issuing cease-and-desist orders, forcing VGW’s exit.
A Georgia lawsuit was dismissed for jurisdictional reasons, but more loom. VGW insists its games comply with state laws, expressing disappointment over Delaware’s order.
Despite regulatory and legal hurdles, VGW’s financials are red-hot. The company posted a 30% profit surge to $492 million on $6.1 billion in revenue for the year ending June 2024, owning over 70% of VGW, pocketed $360 million in dividends.
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