Laurence Escalante, CEO of Virtual Gaming Worlds, Lashes Out at Critical Investors
Laurence Escalante, the billionaire founder and CEO of Virtual Gaming Worlds (VGW), recently fired back at investors who have voiced concerns about his company’s business practices. In a strongly worded response, Escalante urged dissatisfied stakeholders to sell their shares and leave if they lack trust in the leadership.
Escalante Defends VGW’s Transparency Amid Investor Criticism
Investor frustration has been mounting over what many see as a lack of transparency within VGW. Despite the company’s rapid growth and its pivotal role in the increasingly scrutinized sweepstakes gaming sector, VGW has not established an online hub with regular updates for shareholders.
The company further stirred discontent by transitioning from biannual to annual financial reporting, leaving some investors feeling misinformed. Those who voiced concerns about the lack of communication were met with Escalante’s ire.
Using the messaging platform Telegram, Escalante defended VGW’s approach, claiming the company discloses only what is necessary to avoid legal issues and maintain fair access to information. He emphasized that anyone uncomfortable with that is free to divest.
In a particularly heated portion of his message, Escalante took aim at financial analyst Ricky Saini, who has publicly criticized VGW. Escalante bluntly told Saini to “shut the f*** up,” asserting that the analyst lacks the knowledge to comment on internal company affairs. Escalante extended his outrage to broader critics, stating that people don’t understand the challenges VGW is facing and that he cannot legally disclose further information under the Corporations Act.
This is not the first time Escalante has used social media to push back against public perception. He recently expressed frustration on Instagram over what he called “destructive rumors” being spread about his personal life.
VGW Navigating Legal Scrutiny in the U.S. and Australia
VGW operates popular sweepstakes platforms such as Chumba Casino and Luckyland Slots, which have found a strong market in the United States. However, the company has also attracted the attention of regulators in both the U.S. and Australia.
In the U.S., VGW has seen increasing scrutiny as various states question the legality of sweepstakes-based online gaming. Despite navigating a complex legal landscape and facing actions from certain state authorities, including cease-and-desist orders, VGW’s profitability remains strong. This financial success has drawn both new investors and heightened criticism over the company’s governance and disclosure practices.
In Australia, VGW is under review by the Taxation Office, adding to the pressure on the company to maintain compliance amid its international expansion.
U.S. Regulators Push Back on Sweepstakes Model
The broader sweepstakes casino industry continues to face challenges in the U.S., where it is often seen as operating in a legal gray area. Critics argue that sweepstakes firms are essentially running unlicensed online casinos, avoiding the regulatory rigor imposed on traditional gambling operators.
This criticism is especially strong among state regulators, licensed gambling businesses, and tribal casino groups. These stakeholders argue that sweepstakes companies enjoy an unfair advantage by sidestepping standard licensing and compliance protocols.
As a result, numerous states have introduced or passed legislation designed to limit or prohibit sweepstakes casinos. VGW, in response to regulatory pressure, has exited several markets, including Connecticut, Idaho, Michigan, Montana, Nevada, and Washington.
Some companies in the sweepstakes space have signaled openness to operating under formal regulation if given the opportunity. So far, New Jersey appears to be the only state seriously exploring such a framework, potentially providing a model for future regulation.
VGW now finds itself at a crossroads: continue operating in a disruptive space with minimal oversight, or adapt to a more transparent and regulated model demanded by both investors and regulators.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com
