Laurence Escalante, the founder of the prominent sweepstakes company VGW, has resigned permanently from his position, less than a year after becoming the sole owner of the company. This abrupt departure follows his temporary step down as CEO in January 2026, which was prompted by his arrest in Australia on allegations of assaulting a former partner. Further complicating matters, a search of Escalante's home revealed additional charges, bringing the total to 17 and including offenses such as persistent family violence, aggravated assault, home burglary, criminal damage, and drug possession.
On July 3, VGW announced in a statement that Escalante would not return, effective immediately. The company's statement outlined that Escalante had been on a leave of absence since January, following the emergence of the charges, which are deemed personal and unrelated to VGW. Escalante has chosen to focus on personal matters, along with interests in his private business and philanthropy through his family office.
Before his resignation, Escalante had recently acquired complete ownership of VGW. In August 2025, the company's shareholders approved a sale allowing him to purchase the remaining 30% of VGW that he did not own. This acquisition was executed through an unlisted special purpose company linked to his family office and was backed by 85% of shareholder approval. Escalante had initially proposed a $632 million buyout offer in June 2025, valuing the company at $3.32 per share despite an independent expert conducting a valuation of $3.70 per share. During the buyout discussions, Escalante faced controversy after reportedly using inappropriate language in a group chat while addressing shareholders' transparency concerns.
Escalante leaves VGW with an estimated net worth of $3 billion, according to the Australian Financial Review. In the 2024-25 financial year, VGW's total revenue reached approximately $4.8 billion. Notably, Escalante ranks as the 37th richest person in Australia.
VGW operates several key platforms in the U.S. market, including Chumba Casino, Luckyland Slots, and Global Poker, and is a founding member of the Social Gaming Leadership Alliance. However, the company has recently reduced its footprint in the U.S. due to growing opposition to sweepstakes gaming. Since 2024, VGW has pulled its dual-currency sweepstakes products from more than ten states following a wave of legislation aimed at banning such operations. Among the states where VGW has ceased offering products are Connecticut, Delaware, Nevada, New York, New Jersey, Maryland, Montana, Tennessee, and West Virginia.
As various states implemented bans on multi-currency sweepstakes gaming in 2025, additional states such as Indiana, Louisiana, Maine, Oklahoma, and Tennessee followed suit in the early months of 2026. Last month, VGW faced legal action in Kentucky, along with major prediction market operators Kalshi and Polymarket. Kentucky's Attorney General, Russell Coleman, is pursuing a permanent injunction against these companies regarding allegations of facilitating illegal gambling. In VGW's case, the lawsuit challenges its dual-currency model, claiming it violates Kentucky’s Consumer Protection Law, the Loss Recovery Act, and state gambling regulations. In response, a VGW spokesperson stated that the company firmly rejects the claims and intends to defend itself vigorously against the allegations.
