Less than six months after acquiring full ownership of Virtual Gaming Worlds (VGW), founder Laurence Escalante is temporarily stepping down as CEO following his arrest.
Escalante was arrested in Australia after allegedly assaulting a former partner, resulting in eight charges being filed against the VGW CEO. Escalante’s charges include aggravated assault occasioning bodily harm, destruction of property and engaging in family violence. The charges are related to incidents that took place over a six-month period.
The alleged abuse occurred between June 2025 and January 2026, including an incident when he broke into the victim’s home, damaged property and committed an assault.
West Australian police issued a search warrant at Escalante’s home amid the allegations, leading to additional charges, including drug possession with intent to sell or supply, after authorities allegedly found illegal drugs at his residence, including cocaine and MDMA.
“We are aware of the serious charges made against Mr Escalante. These are unrelated to VGW and personal in nature,” a VGW spokesperson said in a statement. “However, we can confirm Mr Escalante will be taking a leave of absence from his role as CEO and Executive Chairman of VGW. In the interim, we have installed experienced leadership from our existing executive team to take on those responsibilities and it remains business as usual for VGW. The company takes any allegations of this nature extremely seriously. As this is a private matter and remains before the courts, we cannot comment further.”
Escalante was released from jail on a $79,000 bond with an order to report to Perth Magistrates Court triweekly. Legal counsel for the 44-year-old claims he will contest the charges levied against him.
Escalante acquires full control of VGW
Escalante was arrested after VGW shareholders last August approved selling him the remaining 30% of the company that he did not previously own. The VGW founder completed the acquisition through an unlisted special purpose company created by his family office after 85% of VGW shareholders voted in favor of selling him the 30% stake.
Ahead of the acquisition, Escalante proposed a $632 million buyout for the minority stake, with the bid considered a fair and reasonable offer by an independent expert.
VGW is undergoing a temporary leadership change as it faces pushback in several U.S. states for its online casino and dual-currency sweepstakes offerings. VGW has pulled its dual-currency sweepstakes products from more than 10 states, including New York, New Jersey, Montana, Connecticut, Tennessee and West Virginia. The company also shuttered operations of its Chumba Casino and Global Poker brands in Canada. VGW also received another cease and desist order in November from the Maryland Lottery and Gaming Control Commission after receiving a similar notice from the regulator in March.
VGW is also facing a lawsuit in California that centers around the spouses of its players, as many of the suits against the company are sent to arbitration because of player terms.
