VGW Boss Launches Bid For Full Control
The founder of Virtual Gaming Worlds has launched a buyout attempt to take control of the remaining 30% of the company. VGW pioneered the sweepstakes casino movement and operates Chumba Casino, LuckyLand Slots, and Global Poker, and now Laurence Escalante wants complete control.
If successful, Escalante intends to relocate the company from Australia to Guernsey. Shareholders have also been offered equity in the Special Purpose Vehicle (SPV) company that Escalante controls. Financing would come from a loan provided by VGW itself, which has raised some questions in the Australian press.
Buyout Bid By the Numbers
The Australian Financial Review has reported that the three brands combined pull in more than $4.1 billion (AUD$6.13 billion) a year, with operating profits of $330 million ($491.6 million) for the year ending in June 2024.
In the proposed deal, Escalante has valued VGW at $2.15 billion (AUD$3.2 billion) and offered shareholders $3.38 (AUD$5.05) per share.
VGW is one of the driving forces behind the newly formed Social Gaming Leadership Alliance, which aims to fight sweepstakes casinos’ corner after an onslaught of state legislation this year. Sweepstakes casinos have been all but banned in four states, and a dozen states tabled legislation seeking to restrict or ban them.
States Standing Against Sweeps Casinos
Connecticut, Nevada, Louisiana, and Montana have all passed legislation banning sweepstake casinos this year, pending approval from the respective state governors. New Jersey, Ohio, and Idaho are actively debating sweepstake bans, and numerous other bills have been presented to the various state senate and house representatives around the country.
It’s a critical time for the sweeps casino industry, which has seen meteoric growth in recent years. VGW was the pioneer with Chumba Casino back in 2012 and remains the market leader in an industry that, according to some figures, returned 75% growth from 2019-2024 and could hit $11 billion revenues this year alone.
Escalante clearly believes in the model and is prepared to bet big on the future of sweeps casinos. We’ll keep an eye on this story as it unfolds.
