VGW is the biggest social gaming company on the planet. It’s the owner of some huge social casino brands, including Chumba Casino, LuckyLand Slots, and Global Poker, all of which reportedly have over 1 million users each. They’re quite literally rolling in cash.

So, the news that Laurence Escalante, the founder and CEO of VGW, is seeking 100% ownership hasn’t come as that much of a shock. In fact, it’s surprising that Escalante didn’t look to do this sooner following the explosive growth of the sweepstakes casino market. What was once a niche industry is said to have generated $8.4bn in 2024 alone through “Sweeps Coins” purchases — making now the perfect time for Escalante to strike a deal.

As things stand, Escalante owns 70% of the company. The other 30% belongs to investors. To get full ownership, it means the sweepstakes pioneer will have to fork out some big money — around $1bn — to get complete ownership. And as it stands, he might just do it.

Tensions Rise as Laurence Escalante Offers to Buy Out Investors

Despite VGW being an incredibly successful company, having generated $4.1bn in revenue during the most recent fiscal year, tensions have been rising between Laurence Escalante and VGW’s minority investors for quite a while now.

As reported on SweepsKings.com, a large chunk of investors have lost faith in Escalante’s leadership following the recent legal problems surrounding sweepstakes casinos. This led to Escalante going on an explicit Instagram rant before then (allegedly) throwing an angry tantrum in VGW’s private Telegram group, telling investors to sell their shares if they truly don’t believe in him anymore.

In the aftermath of his miniature meltdown, Escalante has gone into overdrive and decided enough is enough: he wants 100% control of VGW. You can’t blame him, either, especially since VGW is continuing to pull in record levels of revenue. But whether investors will take the money and walk away from VGW remains up in the air — at least for now.

The $1bn Deal

When it comes to the deal itself, billionaire Laurence Escalante has launched a $1bn-plus offer to buy out all the minority shareholders at VGW. Specifically, he’s looking to get the shares at $5.05 each, valuing the top casino company at just over $3bn. Ultimately, it’s a great deal, marking a 106% premium on the last-traded price for these shares.

The problem comes from the fact that investors might not be willing to let go. After all, sweepstakes casinos have been booming ever since the COVID-19 pandemic, which is when they first started getting popular. With VGW front-and-centre of it all, too, Chumba Casino and LuckyLand Slots have quickly become the player-favorite sites, and the money hasn’t stopped coming in since. Sure, every industry eventually has its day, but it’s fair to say that sweepstakes casinos have yet to hit even touch their prime. Simply put, there’s plenty more profit to come for investors if they stick around.

Pressure from State Lawmakers Shakes Things Up — with New York Being the Latest to Ban Sweepstakes Casinos

It gets even more interesting when you look at the extreme pressure currently being applied to sweepstakes casinos from state lawmakers.

New Jersey, Pennsylvania and a handful of other states have all recently filed bills to have sweeps casinos banned, with New York successfully passing its very own bill just last week.

All of a sudden, sweepstakes casinos have gone from being legal almost everywhere to finding themselves banned in an ever-growing number of states — which is why VGW’s investors have been panicking lately.

Seemingly, CEO Laurence Escalante himself isn’t worried. Over the past year, VGW has been ordered to withdraw operations from Connecticut, Nevada, and Delaware, but leaving these states hasn’t had any genuine impact on the company’s ongoing success. In fact, 2024 was one of the biggest years yet for VGW.

However, Escalante isn’t silly. He’ll know this is a trend that needs monitoring, as the deck of cards holding up the sweepstakes casino industry could come crashing down pretty quickly if more states keep banning them. One thing for sure is that VGW’s stockholders will keep expressing their concern — and they’re looking at Escalante to take leadership.

Stake and Other New Sweepstakes Pose a Big Problem for VGW

Outside of growing legal troubles, VGW has also got another issue to deal with. For a while, Chumba Casino and LuckyLand Slots were the go-to sites for players (and still are with a lot of them) — but the past few years have seen new sweepstakes casinos like Stake start to chip away at VGW’s market share.

At this moment in time, VGW still holds 90% of the market thanks to its big brand sites, so Escalante won’t be losing any sleep yet. However, the Drake-backed Stake and Paris Hilton-sponsored WOW Vegas are two of the upcoming sweepstakes casinos that are gradually starting to build huge player bases. If the trend continues, it won’t be long before VGW’s existing market share drops anywhere up to 20%, especially if sites like Stake keep putting together big-money deals with popular celebrities, influencers, and streamers.

What’s Next for Laurence Escalante and VGW?

Make no doubt about it, Escalante will be desperate to get 100% control of VGW before the end of the year.

From his perspective, it’s a risk. Yes, the company is dominating the sweepstakes casino market, but that dominance might not last much longer thanks to ongoing pressure from state lawmakers and the rising prominence of new sweepstakes casinos like Stake. From what we understand about Escalante, though, he’s relaxed about it.

You can definitely expect a few more social media rants from Escalante over the coming year, as well as increased skepticism from investors. Then, it will likely conclude with the eventual sale of investor stocks, meaning Escalante gets exactly what he wants. And whether the investors are happy about it or not, Escalante has put a pretty good deal on the table for them.

If the stock sale does indeed go ahead, what happens after that is entirely up in the air. VGW will have to navigate some choppy waters if more states continue to ban sweepstakes casinos, as well as deal with emerging competition from a growing number of other sweepstakes sites. But with full control of VGW, Escalante will probably charge ahead and do everything he can to maintain the company’s already impressive 90% market share — so Chumba Casino and LuckyLand Slots won’t be disappearing anytime soon.