Escalante Targets Full Control of Sweepstakes Leader

Laurence Escalante, founder of Virtual Gaming Worlds (VGW), is making a bold move to acquire total ownership of the company he launched. Already the majority shareholder with 70%, Escalante is seeking to purchase the remaining 30% through a deal valuing VGW at approximately $3.2 billion.

On Monday, VGW announced a Scheme Implementation Deed with Ocean BidCo Limited, a special-purpose firm backed by Escalante’s family office, Lance East Office. This agreement would give Escalante full control of the world’s largest sweepstakes casino operator.

Discussions began in November 2024, prompting VGW’s board to form an Independent Board Committee (IBC) to evaluate the offer. Ocean BidCo’s initial proposal, offering between $2.26 and $2.58 per share, was rejected for undervaluing the company. After negotiations, the offer was raised to $3.26 per share.

The deal allows minority shareholders to take the cash payout, retain their investment, or choose a mix of both. Shareholders who continue holding their shares may also be eligible for capital gains tax rollover relief.

IBC Chairman Mike Symons stated, “The VGW Independent Directors believe the offer price recognizes the value of VGW’s business, after taking into its medium and longer-term potential and the ongoing risks relating to VGW’s business and operating environment.”

Tensions and Regulatory Pressure Drive Buyout

The offer comes amid internal tensions and mounting regulatory challenges. Some minority investors have criticized transparency at VGW, fueling discontent. These issues spilled into the open when Escalante, in a private Telegram group, responded with a profanity-filled message telling unhappy investors to exit the company.

The move to consolidate ownership appears aimed at reducing internal resistance and giving Escalante full control to steer VGW through turbulent waters. However, critics warn that centralizing control could reduce ability and increase governance risks.

VGW Pulls Back Amid Regulatory Scrutiny

VGW, operator of Chumba Casino, Luckyland Slots, and Global Poker, has been shut down sweepstakes offerings in New York by August, although social casino games will remain available.

Earlier exits include Connecticut, after a cease and desist order; Delaware, following a state gaming investigation; and Nevada, where Global Poker was closed.

Despite setbacks, VGW is doubling down on social gaming. It recently ed the Social Gaming Leadership Alliance alongside PLAYSTUDIOS, Yellow Social Interactive, ARB Interactive, and B-Two Operations. The alliance aims to shape industry policy through engagement with regulators, lawmakers, and the public.

The buyout, if approved by shareholders, must be finalized by September 15. If completed, the deal will leave Escalante as the sole decision-maker at VGW, with total authority over its next phase amid an evolving gaming landscape.

Source:

“VGW founder wants to acquire full ownership of sweeps giant” SBCAmericas. Jun 2, 2025