Laurence Escalante, the billionaire founder of Virtual Gaming Worlds (VGW), is facing internal pushback from investors over the operation of Kickr Games, a social casino and sports betting business based in the U.S. Owned and managed separately by Escalante’s private family office, Kickr has been drawing scrutiny for operating in a space that closely resembles VGW’s own offerings.
Kickr launched in 2023, marking Escalante’s initial venture into the U.S. social betting market. Unlike VGW, which operates under its own corporate structure, Kickr falls under Escalante’s Lance East Office and is reportedly led by a former VGW executive. The overlap in business activities has triggered concern among VGW stakeholders who view Kickr as a potential rival to the sweepstakes empire Escalante built.
VGW Maintains Kickr Is Not a Rival
Despite the parallels between the two companies, VGW has publicly denied any connection to Kickr or its operations. “This is a business … that is completely separate from VGW, which has had no involvement with it whatsoever,” VGW stated to the Australian Financial Review. “It has no impact on VGW or its operations, and VGW does not view it as a competitor.”
Nevertheless, the timing and similarity in offerings have heightened scrutiny—especially as Escalante seeks to consolidate control over VGW. His ownership of Kickr is expected to be a complicating factor in discussions with shareholders during the proposed acquisition process.
$632 Million Buyout Aims for Full VGW Control
Escalante already controls 70% of VGW, but a recent Scheme Implementation Deed signed with Lance East Office could see him acquire the remaining 30%. Valued at roughly $2 billion, the transaction would effectively privatize VGW, handing full control to Escalante.
The deal, outlined in the Scheme Implementation Deed filed last month, allows minority shareholders to cash out, maintain their stake, or opt for a combination of both. An independent expert has deemed Escalante’s $632 million offer “fair and reasonable,” with VGW shareholders scheduled to vote on the proposal on August 1. If approved, the transaction is expected to finalize by September 15.
Funding, Revenue, and Regulatory Pressures
To finance the buyout, Escalante’s Lance East Office plans to borrow up to $586 million from VGW itself. According to financial disclosures, VGW generated $4 billion in revenue for the 12-month period ending June 30 of the previous year, reflecting a 27% year-over-year increase.
Despite this growth, VGW is bracing for headwinds. With tightening regulatory scrutiny over social casinos and sweepstakes operations in the United States, the company expects its earnings per share to decline by as much as 15% in its upcoming financial results. Recent market exits in states such as Connecticut, Delaware, New York, and Nevada highlight the increasing regulatory challenges the company is navigating.
Escalante’s Wealth and Dual Interests Draw Attention
The overlap between Escalante’s private ventures and his corporate leadership at VGW continues to stir debate, especially as he aims to privatize the business. His personal wealth has surged to around $3 billion—a 20% increase from the prior year—securing him the 35th spot on the Financial Review’s Rich List.
That ascent has been driven largely by VGW’s strong performance in the social gaming sector. However, Kickr’s expanding presence in similar market territory has raised questions about potential conflicts of interest and the long-term implications for VGW’s investor base.
While VGW insists that Kickr operates entirely independently, the issue remains a flashpoint in Escalante’s effort to bring VGW under full private ownership. With the shareholder vote looming, how investors weigh the dual roles Escalante plays could prove pivotal in determining the company’s future direction.
Source:
‘’Escalante sets up second casino business, annoying VGW investors’’, afr.com, July 07, 2025.
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