Laurence Escalante, the Perth-based billionaire who founded online gambling company Virtual Gaming Worlds (VGW), has stepped down from his role as chief executive and executive chairman with immediate effect. His departure follows a five-month leave of absence and ends his formal leadership of the social gaming business he founded in 2010.
VGW confirmed the resignation on Friday, July 3, stating that Escalante would step down to focus on his personal affairs as well as the private businesses, investment activities and philanthropic interests managed through his family office.
“Mr Escalante has been on leave since January, when the company became aware of allegations made against Mr Escalante by WA Police that were unrelated to VGW and were personal in nature.” the company said.
He added that his resignation was effective immediately.
Legal Issues and Ongoing Proceedings
Escalante has faced various charges in Western Australia, including charges related to family violence, robbery and drug possession. He had previously rejected the claims, stating that he would fight them.
When the allegations first became public, he said: "My arrest in this matter came as a shock to me and my family. From the little I know about the allegations at this stage, I can only say that they are false and will be defended.” he said.
The case is scheduled to return to Perth Magistrates Court in August.
VGW said the legal matter was personal and not related to the company’s operations.
Following Escalante’s departure from day-to-day leadership, VGW confirmed this Mats Johnson will remain as chief executive while the company continues to search globally for a permanent replacement. Johnson was initially appointed as interim CEO when Escalante stepped down at the start of the year.
Johnson will continue to work alongside the company’s existing executive team during the transition.
“Laurence started VGW 16 years ago and grew it from an innovative idea in Perth to one of Australia’s largest unlisted businesses and an overseas success story,” said Johnson, as reported by AFR.
He also highlighted Escalante’s contribution to the development of social games. “He pioneered a new social gaming category that is now a major market in the US, the largest consumer and gaming market in the world, bringing world-class entertainment to millions of players,” he said.
Business Growth and Regulatory Pressure
VGW, originally founded in Perth, has grown to become one of Australia’s largest private gaming companies. It established a large presence in the United States through sweepstakes-style online casino products operating under brands such as Chumba Casino, LuckyLand Slots, and Global Poker.
The company has grown rapidly using a model that utilizes lottery mechanisms and virtual currency, a structure that allows it to operate in multiple US jurisdictions. At its peak, VGW reported revenue of about $7 billion in the 2024–25 fiscal year.
However, in recent years, the business has faced increasing regulatory pressure in the United States. State-level restrictions and legislative changes targeting sweepstakes-style gambling have led to increased oversight and operational restrictions in some jurisdictions, including densely populated markets such as California.
VGW was also impacted by broader industry lobbying efforts and shifting legal interpretations of the lottery gaming framework. Several US states have restricted or banned certain dual currency systems used by social casino operators.
Corporate Restructuring and Ownership Shift
The change in leadership comes after a major restructuring of VGW’s ownership. Last year, Escalante completed a buyout of minority shareholders, taking the company private under his family office structure. The transaction removed VGW from public disclosure requirements and consolidated control under its ownership.
After purchase, The company’s corporate structure was reorganizedwith Escalante and related entities holding the majority of the shares through an unlisted ownership arrangement.
With Escalante out of management, VGW now enters a new phase under interim leadership while continuing to navigate regulatory challenges in its key markets. The company’s future direction will be shaped by its ability to adapt to tightening US regulations and the search for stable executive leadership.
Johnson said the business remains focused on sustainability, supported by more than 1,300 employees and sustainable operations across international markets.
