Laurence Escalante, founder and CEO of Virtual Gaming Worlds (VGW), is advancing efforts to secure complete ownership of the sweepstakes leader. He proposes buying out minority shareholders, aiming to elevate the online gaming company’s valuation to $3.2 billion. Escalante plans to gain full control via his family office, Lance East Office, as he already holds a 70% stake. VGW’s success stems from leveraging a U.S. regulatory loophole, facilitating online casino-style games like slots and poker. Initially launched on Facebook, VGW now runs major platforms like Chumba Casino, Luckyland Slots, and Global Poker, effectively competing with traditional gambling firms. However, the company’s rapid expansion has led to increased scrutiny, with U.S. states considering tighter regulations on VGW’s sweepstakes approach. Additionally, some investors have voiced concerns over financial transparency.
Recently, The Australian Financial Review reported that Escalante harshly criticized shareholders in a Telegram chat, urging those doubting him to sell their shares. Now, Escalante offers $5.05 per share, adjusted for dividends, with an option for shareholders to retain their investment in the new entity. Non-Escalante shareholders must approve the offer.
Mike Symons, Canterbury Partners co-founder and independent board member, along with executive Mats Johnson, is reviewing the deal. Although an earlier offer of $3.50–$4.00 per share was declined, they now endorse the revised proposal. Symons assured stakeholders of the legitimacy and thoroughness of the process, noting that VGW’s valuation considers social-gaming competitors like Playtika, while acknowledging VGW’s distinct position. U.S. regulatory challenges, such as VGW’s anticipated withdrawal from New York, have been incorporated into financial evaluations. Despite these challenges, VGW’s annual revenue surged 27% to $6.13 billion, with profits rising to $491.6 million. Escalante’s net worth has grown by 20% to $4.5 billion over the past year.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com