Laurence Escalante, the billionaire founder of gaming giant VGW, has set out his intentions to take total control of the company through an offer to minority shareholders. This move comes amidst heightened shareholder tensions and increasing regulatory scrutiny over VGW’s North American sweepstakes business, which has led to multiple market exits for the operator.

Escalante, who holds a 70% stake in VGW, is proposing to offer minority shareholders AU$5.05 per share, less any dividends paid, to acquire the remaining shares. This will be executed through a Scheme Implementation Deed with Ocean BidCo Limited, an unlisted special purpose company created by Escalante’s family office, Lance East Office. This proposed acquisition values VGW, operator of brands such as Chumba Casino, Luckyland Slots, and Global Poker, at roughly $3.2 billion. According to Lance East, the figure offered represents a premium of approximately three times VGW’s EBITDA for the 12 months ending December 31, 2024.

Founder Bids for Full Control Amidst Shareholder Tensions

The timing of Escalante’s bid, who has an estimated personal net worth of $4.5 billion, is notable given recent volatility experienced with VGW’s investors, particularly over questions regarding the transparency of the company’s financial reporting. These disruptions were reportedly largely fuelled by the firm’s decision to move from a biannual to an annual reporting model last year (2024). Escalante reportedly further heightened tensions last month (May 2025) when he publicly urged investors on the social media site Telegram to sell their shares if they did not trust VGW’s practices.

On the share purchase offering, Escalante conveyed, as reported by iGaming Times, that for some time, many VGW shareholders have inquired about how and when a liquidity event might arise. He believes the Scheme represents an efficient opportunity to allow those shareholders looking to monetise their investment for cash to do so. If the scheme is implemented, shareholders will have the option to continue their investment in VGW by holding shares in VGW’s new holding company, Ocean BidCo Limited. The scheme must now be authorised by shareholders, who have been urged to approve it by a VGW Independent Board Committee. The Independent Board Committee Chair, Mike Symons, stated, as reported by iGaming Times, that the VGW Independent Directors believe the offer price “recognises the value of VGW’s business, after taking into account its medium and longer-term potential and the ongoing risks relating to VGW’s business and operating environment.” A shareholder meeting to decide on the scheme is expected to take place in July, with implementation anticipated to occur in August if approved.

North American Sweepstakes Business Faces Scrutiny and Exits

The proposals from Escalante come amidst an uncertain future for VGW’s North American sweepstakes business, which currently faces increased scrutiny from regulators and lawmakers across the wider sweepstakes industry. Notably, last week (late May/early June 2025), the firm made the decision to pull its sweepstakes gaming offering from New York, informing players of a timeline for winding down the Sweeps Coins section of its platform.

VGW’s exit from New York follows similar moves by competitors such as High 5 Casino, McLuck, and Hello Millions, which all shut down their sweepstakes operations in the Empire State earlier this year (2025). In May 2025, Montana became the first US state to explicitly ban online sweepstakes casinos after Governor Greg Gianforte signed SB 555 into law. A host of other states, including New York, are reportedly considering similar legislation aimed at curtailing the vertical. In recent months, VGW has also proactively shut down its sweepstakes platforms in several other states. The company pulled out of Connecticut last year (2024), ceased its Global Poker operations in Nevada in January (2025), and exited Delaware in April (2025). These states, as well as Maryland, had previously issued cease-and-desist orders to VGW and other sweepstakes operators, indicating a concerted regulatory effort.

In conclusion, VGW founder Laurence Escalante’s bid to take full control of the company is unfolding amidst significant shareholder tensions regarding transparency and a challenging regulatory environment for its North American sweepstakes business. The company faces increasing scrutiny and has proactively pulled out of multiple US states, indicating a strategic response to evolving legal interpretations and regulatory pressures on the sweepstakes casino model. The outcome of the shareholder vote will determine VGW’s future ownership structure as it navigates these complex challenges.