Less than a year after garnering approval to acquire full ownership of sweepstakes giant VGW, founder Laurence Escalante has resigned from the company permanently.
Escalante temporarily stepped down from his role as CEO in January 2026 after being arrested in Australia for allegedly assaulting a former partner. A search warrant at Escalante’s home amid the allegations also led to additional charges being filed. In total, Escalante faces 17 charges, including:
- “Persistent” family violence
- Aggravated assault
- Home burglary
- Criminal damage or destruction of property
- Drug possession
VGW confirmed on Friday, July 3, that Escalante will not return to the company he founded as he has resigned permanently, effective immediately.
“Mr Escalante has been on a leave of absence since January, when the company became aware of charges made against Mr Escalante by WA Police that are unrelated to VGW and personal in nature,” said VGW in a statement to the Australian Financial Review (AFR). “Mr. Escalante informed the company he had decided to resign to focus on personal matters, as well as his private business, investing and philanthropic interests at his family office.”
Escalante acquired full VGW ownership before resignation
Less than a year ago, Escalante took 100% ownership of VGW when the company’s shareholders approved the sale of the remaining 30% of the company he did not previously own in August 2025. Escalante acquired full ownership via an unlisted special purpose company created by his family office, after 85% of shareholders approved the transaction.
Escalante proposed a $632m buyout offer in June 2025 for the remaining 30% of VGW that he did not previously own and refused to submit a higher bid after his initial offer was deemed fair and reasonable by an independent expert. His buyout offer was for $3.32 per share, with the independent expert valuing VGW at $3.70 per share.
The buyout process also led to controversy for Escalante, with the former CEO reportedly responding to transparency concerns from shareholders with a profanity-laced tirade in a group chat.
Escalante leaves VGW with a net worth of approximately $3bn, according to the AFR. For the 2024-25 financial year, total revenue for VGW reached roughly $4.8 billion.
Meanwhile, Escalante’s personal wealth ranks him as the 37th richest person in Australia.
VGW scales back in US market amid anti-sweeps pressure
VGW is one of the most prominent sweepstakes and social gaming operators in the U.S. market. It runs the Chumba Casino, Luckyland Slots, and Global Poker platforms as is a leading founding member of the Social Gaming Leadership Alliance trade association.
However, it has scaled back its presence in the country amid a major shift in the perception and operation of sweeps gaming. Since 2024, VGW has pulled its dual-currency sweepstakes products from over 10 states during a period when numerous states have passed legislation to ban sweepstakes gaming and others have made regulatory attempts to shut down VGW’s and other companies’ operations through cease-and-desist orders.
States where VGW no longer offers sweepstakes products include:
- Connecticut
- Delaware
- Nevada
- New York
- New Jersey
- Maryland
- Montana
- Tennessee
- West Virginia
After numerous states banned multi-currency sweepstakes gaming in 2025, several others did so in the first half of 2026, including:
Last month, VGW was targeted alongside leading prediction market operators Kalshi and Polymarket in separate lawsuits filed by Kentucky Attorney General Russell Coleman.
The AG is seeking a permanent injunction preventing the companies from offering “illegal gambling” in Kentucky. The VGW lawsuit calls out the dual-currency model and alleges that VGW is skirting Kentucky’s Consumer Protection law, the Loss Recovery Act and state gambling laws.
A VGW spokesperson told SBC Americas that “we respectfully reject the Kentucky Attorney General’s claims and plan to vigorously defend this lawsuit.”
