URGENT UPDATE: Laurence Escalante’s bid to fully acquire Virtual Gaming Worlds (VGW) has just been approved, positioning the company to go private. Shareholders gave the green light to Escalante’s $2.1 billion takeover on August 1, 2023, with a significant 91% approval from minority stakeholders, surpassing the required 75%.
This monumental decision allows VGW, the parent company behind popular platforms like Chumba Casino, Global Poker, and Luckyland Slots, to transition into private ownership, a critical shift amidst ongoing regulatory challenges in the U.S. gaming sector.
Escalante, an Australian billionaire and the company’s founder, had faced significant hurdles in previous attempts to acquire the remaining shares. After months of negotiations and growing frustrations with minority shareholders, his final proposal was met with overwhelming support. The deal is set to finalize on August 20, 2023, potentially marking a new era for VGW.
The move to go private comes as VGW is grappling with increased scrutiny from regulators in various states, leading to cease-and-desist orders aimed at curtailing its sweepstakes offerings. Critics argue that VGW exploits legal loopholes, raising the stakes in the ongoing debate about the legality of online gaming in the U.S.
In light of these developments, VGW recently updated its terms of service, aligning with a new tax policy concerning its in-game currency, Gold Coins. The changes respond to mounting legal pressures and the need to adapt to a more stringent regulatory environment.
Furthermore, VGW announced a halt to its Sweeps Coins offering in Mississippi and New Jersey, giving players until September 4, 2023, to redeem any remaining balances. This decision reflects the company’s strategy to navigate the complex landscape of U.S. gaming laws while maintaining its competitive edge.
As Escalante prepares for this pivotal transition, industry observers will be watching closely. The outcome of this acquisition could redefine VGW’s operational footprint, with potential plans to relocate the business to Guernsey, while keeping its headquarters in Australia.
The immediate future of VGW hinges on how successfully the company can adapt to regulatory pressures and capitalize on its established brand in the sweepstakes gaming market. Stakeholders and players alike are eager to see how these developments unfold in the coming weeks.
