VGW founder and CEO Laurence Escalante is preparing a bold move to acquire the remaining 30% of his company, aiming to take full control of one of the world’s largest online sweepstakes casino operators.
VGW, which owns Chumba Casino, Luckyland Slots, and Global Poker, has offered existing shareholders AU$5.05 (US$3.28) per share or the option to exchange their holdings for shares in a specially formed bid vehicle. This offer places the company’s valuation at AU$3.3 billion (US$2.14 billion), amid increasing regulatory scrutiny of sweepstakes models across the U.S.
Regulatory Pressures Mount in the U.S.
VGW’s buyout effort comes as several U.S. states weigh or advance legislation that could dramatically alter the sweepstakes landscape. Louisiana took a significant step toward banning sweepstakes casinos—joining Montana and Nevada—after the state House passed legislation unanimously on Monday. Connecticut could follow suit, with Senate Bill 1235 currently awaiting the governor’s signature.
Meanwhile, New York and New Jersey are also moving forward with their own bills, and VGW is reportedly beginning to scale back its sweepstakes offerings in New York as a precautionary measure.
Behind the Buyout Offer
On its official website, VGW outlined the background of the buyout process. The initiative began in November 2024 when Lance East Office (LEO)—the party behind the special purpose vehicle—approached VGW with a preliminary proposal.
In response, VGW’s board established strict governance protocols to ensure shareholder interests were protected. This included forming an Independent Board Committee (IBC) and appointing Mike Symons of Canterbury Partners as an independent non-executive director.
By January, LEO had submitted a non-binding indicative proposal to acquire VGW, offering between AU$3.50 (US$2.27) and AU$4.00 (US$2.60) per share. The IBC rejected this initial bid, arguing that it significantly undervalued the company.
Following several rounds of negotiation, LEO increased its offer to AU$5.05 per share and added the option for shareholders to roll over their shares into the special purpose bid vehicle—an alternative structure that gives them continued investment exposure.
Looking Ahead
Escalante’s effort to consolidate ownership positions VGW to navigate an uncertain regulatory future with greater agility. As the legal environment for sweepstakes casinos continues to evolve, full control may provide VGW with the strategic flexibility it needs to either pivot its business model or capitalize on potential legislative gaps in the U.S. market.
