VGW Founder Escalante Resigns Amid Scandal, Sweepstakes Struggles
Escalante, on leave since January following arrest, exits sweeps giant without comment
Six months after announcing his leave of absence, troubled VGW CEO and founder Laurence Escalante’s absence became more permanent Friday when the massive sweepstakes gaming company he long helmed announced his resignation.
Escalante, 44, was arrested in Perth, Australia, in January and charged with aggravated assault, domestic violence, destruction of property, and possession of illegal substances with intent to sell or supply. While vowing to fight the charges, Escalante began a leave of absence from VGW (which stands for Virtual Gaming Worlds), the company he founded in 2010 that operates such “Social Plus” gaming platforms as Chumba Casino, Luckyland Slots, and Global Poker.
VGW reported $5.2 billion in revenue in fiscal year 2025, but the world of social gaming with sweepstakes-style prizing has been trending in the wrong direction in the U.S. Six states enacted bans and/or undertook enforcement against them in 2025 and another six states did so in the first half of 2026.
Logic dictates that the personal legal issues and scandal were the far bigger reason for the change at the top than any business-related downturn, and Escalante did not release a statement explaining his decision to resign.
The only statement came from VGW, which appointed senior executive Mats Johnson as acting CEO while the company searches for a long-term replacement.
“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,” Johnson said in the release. “He pioneered a new social gaming category that is now a major market in the U.S., the largest consumer and gaming market in the world, delivering world-class entertainment to millions of players. We thank Laurence for these and many other achievements and contributions at VGW, and for the confidence he is showing in us and all our 1,300 team members — to continue VGW’s successes in the future.”
It wasn’t a holiday weekend in Australia like it was in the U.S., but it was nevertheless a Friday when the resignation release went out — the traditionally preferred time to share negative news and hope it comes and goes quietly.
‘Toxic workplace culture’
The same week Escalante’s resignation was made public, the Australian publication Financial Review ran a feature going behind the scenes of VGW under Escalante, with part of the headline explaining: “Former employees of Laurence Escalante’s VGW lift the lid on the wild parties and toxic workplace culture they say were rife at the billionaire’s gambling empire.”
VGW’s release said 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.”
According to prosecutors, Escalante in January physically assaulted a 24-year-old woman, described as his ex-partner, in her home, then stole a Cartier watch and other pieces of jewelry from her. The woman said Escalante had assaulted her previously, and prosecutors detailed a pattern of “coercive, violent, and controlling behavior” throughout the relationship.
In August 2025, Escalante took VGW private and went from 70% ownership to 100%, stating that taking the company private would better position it to deal with the building regulatory challenges and provide more flexibility toward restructuring.
By revenue, Chumba remains the leading sweepstakes gambling site in the U.S.
Eric has been a professional editor and writer for more than 25 years, including nearly 20 years of experience covering the gambling industry. He was editor-in-chief of the poker magazine All In from 2005-2015 and manag…
