VGW founder Escalante resigns as CEO

• Laurence Escalante has resigned as chief executive and executive chairman of VGW, effective immediately.
• Mats Johnson remains acting CEO while VGW runs a global search for a permanent replacement.
• The resignation follows a $3.2 billion buyout and mounting US regulatory pressure on sweepstakes casinos.

Laurence Escalante, the Perth-based billionaire who founded Virtual Gaming Worlds (VGW) in 2010, has resigned as chief executive and executive chairman with immediate effect.

VGW confirmed the move on July 3, 2026, closing out a five-month leave of absence and ending his formal leadership of the sweepstakes casino group.

Leave becomes permanent

VGW said Escalante had been on leave since January, when the company became aware of charges filed against him by Western Australian police. The business has consistently described the matter as personal and unrelated to VGW’s operations.

Escalante informed the company of his decision to step back permanently, citing his private business, investing and philanthropic interests at his family office.

Mats Johnson, who was appointed acting chief executive when Escalante first took leave, will continue running the business while VGW conducts a global search for a permanent replacement.

Mats Johnson, acting CEO at VGW, said:

“Laurence started VGW 16 years ago and grew it from an innovative idea in Perth into one of Australia’s largest unlisted businesses and overseas success stories. He pioneered a new social gaming category that is now a major market in the US, the largest consumer and gaming market in the world, delivering world-class entertainment to millions of players.”

Charges still contested

Escalante faces multiple charges in Western Australia, including aggravated home burglary, stealing, aggravated assault occasioning bodily harm, criminal damage, and persistently engaging in family violence, along with three counts of possessing prohibited drugs with intent to sell or supply.

He has rejected the allegations. When the charges first became public, Escalante called his arrest a shock to himself and his family and said the claims were untrue and would be defended. The case remains before the Perth Magistrates Court, with no trial date set and no plea entered.

Regulatory pressure builds

VGW built its business on sweepstakes-style social casino products under brands including Chumba Casino, LuckyLand Slots and Global Poker. The company reported AU$6.1 billion in revenue for fiscal year 2024, up 27% year-on-year, with net profit of AU$491.6 million.

That growth has coincided with tightening US scrutiny of the dual-currency sweepstakes model. VGW has withdrawn its products from more than ten states, including New York, New Jersey and Connecticut, and has faced cease-and-desist action from regulators including Maryland’s Lottery and Gaming Control Commission.

The leadership change follows a major ownership restructuring. In August 2025, Escalante completed a $3.2 billion buyout of minority shareholders through a special purpose vehicle backed by his family office, taking VGW fully private.

VGW’s next hire will land in the middle of that fight. Whoever succeeds Escalante inherits both a leadership vacuum and a rulebook that keeps shifting under sweepstakes operators, with several more state bills already queued for the next legislative session.