URGENT UPDATE: In a significant move, shareholders of Virtual Gaming Worlds (VGW) have just approved founder Laurence Escalante‘s takeover bid, paving the way for the company to go private. The approval, granted on August 1, comes after Escalante presented a revised offer totaling AUD 3.2 billion (approximately $2.1 billion), a crucial step in finalizing his acquisition of the gaming powerhouse known for popular platforms like Chumba Casino and Global Poker.
With a commanding 91% of minority shareholders backing the deal, VGW is now set to transition to private ownership, well above the 75% threshold required for approval. This decisive vote marks a turning point for Escalante, who had faced challenges in negotiations with shareholders skeptical of the company’s future direction.
Earlier conflicts had escalated, with reports indicating a growing rift between Escalante and some shareholders, leading him to suggest they sell their stakes. Now, with the green light from shareholders, Escalante is expected to finalize the deal by August 20. Following the acquisition, he is reportedly considering relocating the company’s base to Guernsey while maintaining its headquarters in Australia.
However, VGW faces significant regulatory challenges as it operates within a highly scrutinized sweepstakes sector in the U.S. States have intensified pressures on VGW, implementing cease-and-desist orders against the company and its competitors due to concerns over legal compliance. Critics argue that sweepstakes operators exploit loopholes to offer online gaming without proper licensing, raising alarms among tribal gaming operators.
In response to mounting regulatory pressures, VGW recently updated its terms of service regarding its in-game virtual currency, Gold Coins. Additionally, as part of its compliance efforts, VGW has ceased its Sweeps Coins offerings in Mississippi and New Jersey, giving players until September 4 to redeem any remaining coins.
This approval comes at a critical juncture for VGW, as the company’s future hinges on managing both its business strategy and regulatory compliance. As developments unfold, stakeholders and users alike are keenly watching how this transition impacts VGW’s operational landscape and the broader sweepstakes industry.
Stay tuned for more updates as this story develops, and share your thoughts on Escalante’s bold move towards total ownership of VGW.
