VGW CEO And Owner Escalante Arrested In Australia

VGW Chief Executive Officer and owner Laurence Escalante was arrested in Australia and is facing multiple charges, including ones for drug possession and assault.

The 44-year-old Escalante, who was arrested in Perth on Thursday, was charged with aggravated assault, engaging in family violence, destruction of property, and possession of cocaine and MDMA with intent to sell or supply.

According to the Sydney Morning Herald, Escalante released a statement indicating he plans to fight the charges, saying, “My arrest on these matters has come as a shock to myself and my family.

“From the little I know of the allegations at this stage, I can only say that they are untrue and will be defended. I ask that both mine and my family’s privacy be respected, and thank them for their support.”

VGW is one of the largest online sweepstakes casino operators in the United States, but online sweeps is also a gaming vertical struggling to maintain viability. Six states last year passed legislation to ban sweepstakes-model gambling, including New York, New Jersey, and California. Other states have picked up that baton this year as statehouses in Maryland, Virginia, and Indiana are also considering legislation to make them illegal.

Taking leave of absence as CEO

VGW released a statement Saturday saying Escalante will be taking a “leave of absence from his role as CEO and Executive Chairman of VGW.”

“We are aware of the serious charges made against Mr Escalante. These are unrelated to VGW and personal in nature. However, we can confirm Mr Escalante will be taking a leave of absence from his role as CEO and Executive Chairman of VGW. In the interim, we have installed experienced leadership from our existing executive team to take on those responsibilities and it remains business as usual for VGW. The company takes any allegations of this nature extremely seriously. As this is a private matter and remains before the courts, we cannot comment further.”

Escalante’s arrest comes less than two weeks after VGW reached a multi-year partnership with WWE in which the social gaming company will collaborate with the global entertainment brand across multiple platforms. The deal gives VGW access to WWE’s global network and “superstar talent” for content and ad campaigns spanning WWE’s digital, social, and broadcast channels.

VGW brands also will receive signage across WWE programming including its popular television show Smackdown as well as premium live events including Wrestlemania and SummerSlam.

Police charges leading to arrest

At a hearing Friday detailing the charges, prosecutors claimed the incidents leading to Escalante’s arrest began Jan. 26 when he assaulted a 24-year-old woman who was his ex-partner. The woman told police she had fallen asleep early last Monday evening before being woken to missed calls and “angry” messages from Escalante.

He allegedly then arrived at her house and forced his way into the bedroom before “striking her with a closed fist.” Prosecutors further allege Escalante then locked himself in a bedroom and stole multiple items of jewelry, including a Cartier watch.

The woman also told police Escalante had assaulted her on multiple occasions throughout their relationship, which had ended in December. She detailed one occasion when Escalante allegedly assaulted her by repeatedly punching her in the face while the two were being driven in a car.

Prosecutors claim the multiple incidents show a pattern of “coercive, violent, and controlling behavior” throughout their relationship.