Laurence Escalante has made a firm $3.2 billion move to buy out minority shareholders in Virtual Gaming Worlds (VGW), cementing his intent to take sole ownership of the sweepstakes casino leader. The Perth billionaire, who already owns 70% of the company, has stated through his Lance East Office (LEO) that the offer is “best and final” and will not be raised.
Shareholders to Vote on Final Offer in August
The deal involves a cash offer of A$5.05 per share via Ocean BidCo Limited, a special purpose company established by Escalante’s family office. Australia’s Federal Court has approved a Scheme Meeting scheduled for August 1, where VGW shareholders will vote on the proposed acquisition.
Independent expert Kroll Australia, brought in to assess the transaction, deemed the offer “fair and reasonable” in light of the company’s valuation—up to $3.70 per share.
Mike Symons, VGW’s independent non-executive director and chair of the independent board committee, urged shareholders to give the proposal serious thought. “We believe the scheme represents an attractive outcome for shareholders, noting this is the best and final offer from LEO and that an alternative superior takeover proposal from another person is unlikely to emerge.”
Negotiations Led to Improved Terms
Initial offers from Escalante ranged between A$2.26 and A$2.58 per share, but the board committee rejected those early bids. After back-and-forth negotiations, the price was eventually raised to the current A$5.05. According to the board, several enhancements were negotiated before the final offer was presented, and LEO has confirmed that no further increase will follow.
The deal offers minority shareholders options—cash, continued investment in VGW, or a mix of both. If approved, the transaction must be finalized by September 15.
Facing Headwinds in a Shifting Market
The buyout comes at a time when VGW is dealing with increased regulatory scrutiny in the U.S., a key market for the company. VGW recently halted its sweepstakes operations in New York, Connecticut, and Delaware amid mounting legal pressure. In response, it helped launch the Social Gaming Leadership Alliance alongside ARB Interactive and Nuvei to advocate for the sector.
Symons said the offer gives shareholders an opportunity to “realise cash value in the short-term,” especially given the business climate. “Today is an important milestone in this proposed transaction,” he added, encouraging shareholders to review the full scheme booklet.
Controversy Behind the Scenes
While Escalante’s financial offer has received legal and expert backing, tensions behind the scenes have surfaced. Reports emerged that he lashed out at minority shareholders during negotiations, reportedly telling them to “shut the f*** up” in a Telegram group chat when asked about the company’s financial transparency.
Despite the friction, Escalante is holding firm. With no plans to increase the offer further, the fate of the transaction now lies with VGW’s remaining investors.
Source:
“Escalante goes best and final in $3.2b bid for his gambling biz VGW”, afr.com, Jun 29, 2025
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