VGW founder Laurence Escalante has resigned as Executive Chairman and Chief Executive Officer of Virtual Gaming Worlds (VGW), ending his 16-year leadership of the company after taking a leave of absence earlier this year following criminal charges brought against him in Western Australia.
The company announced Escalante’s resignation with immediate effect, saying he had chosen to step down to focus on personal matters, along with his private business interests, investment activities and philanthropic work through his family office.
Escalante had been on leave since January after VGW became aware of charges filed by Western Australia Police. The company has consistently said the allegations are unrelated to its business and are personal in nature.
According to court allegations reported earlier this year, Escalante faces charges including persistent family violence, aggravated assault, aggravated burglary and multiple drug offences. Prosecutors also allege he possessed trafficable quantities of cocaine, MDMA and ketamine with intent to sell or supply. The allegations remain before the courts.
Following his arrest, Escalante denied the allegations in a statement to gambling news outlet The Straight.
“My arrest on these matters has come as a shock to myself and my family. From the little I know of the allegations at this stage, I can only say that they are untrue and will be defended. I ask for both mine and my family’s privacy be respected, and thank them for their support,” said Escalante.
VGW leadership transition underway as Laurence Escalante steps down
Senior executive Mats Johnson, who assumed the role of Acting CEO when Escalante stepped aside in January, will continue leading the business while VGW conducts a global search for a permanent chief executive.
The executive leadership team credited Escalante with building the company from its launch in Perth in 2010 into one of Australia’s largest privately held businesses with a major presence in the United States.
“Laurence started VGW 16 years ago and grew it from an innovative idea in Perth into one of Australia’s largest unlisted businesses and overseas success stories,” Johnson said.
“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, delivering world-class entertainment to millions of players. We thank Laurence for these and many other achievements and contributions at VGW, and for the confidence he is showing in us – and all our 1300 team members – to continue VGW’s successes in the future.”
Escalante’s departure comes less than a year after VGW shareholders approved his bid to acquire the remaining 30% of the company he did not already own. Shareholders backed the AUD 632 million ($439 million) takeover proposal through Ocean BidCo Limited, with 85% voting in favor after an independent assessment concluded the $3.32 per share offer was fair and reasonable.
VGW, which has reported annual revenue of approximately $4 billion and operates the Chumba Casino and Luckyland Casino sweepstakes platforms, said Johnson and the existing executive leadership team will continue managing the business until a permanent CEO is appointed. The company did not provide a timeline for completing the global search.
Featured image: Screenshot via The Australian YouTube
