VGW Owner Maintains Final Bid to Acquire Full Ownership of Sweepstakes Company

Laurence Escalante, the majority owner of VGW, has confirmed that he will not increase his A$3.2 billion (approximately USD 2.1 billion) bid to acquire full control of the sweepstakes gaming company. The proposal, first submitted in early June, values VGW at A$5.05 per share (approximately USD 3.32). Kroll Australia, acting as an independent expert, reviewed the offer and found it “fair and reasonable,” estimating the equity value of VGW to range between A$4.55 and A$5.10 per share.

Escalante’s Final Bid Signals Endgame for VGW Ownership Deal

VGW Independent Director Mike Symons described the proposal as a strong outcome for shareholders, adding that a competing offer is unlikely to materialize. Escalante, who already owns approximately 70% of VGW, has made it clear that the current offer is final.

To acquire the remaining 30%, VGW has filed a Scheme Implementation Deed with Ocean BidCo Limited, a special-purpose entity controlled by Escalante’s family office. An earlier, lower bid ranging from A$2.26 to A$2.58 per share was rejected by the board committee, triggering the higher, best-and-final offer.

The process has seen tensions surface. According to reports, Escalante responded to shareholder concerns about transparency with a profanity-laced comment in a private group chat, underlining the contentious nature of the negotiations.

The proposed scheme enables minority shareholders to receive cash, retain a stake in the entity, or opt for a combination of both. A shareholder vote is expected next month, with the deal slated for completion by September 15, pending approvals.

U.S. Regulatory Landscape: A Threat or Strategic Pivot?

VGW and other sweepstakes casino operators employ a “dual currency” model, where players purchase virtual coins and receive complimentary sweepstakes entries. While the system has helped them avoid traditional gambling definitions, according to Sweepsy.com,  it’s now under increasing scrutiny in the U.S.

Several states have cracked down in recent months. Louisiana, Connecticut, Mississippi, and New York have either issued cease-and-desist letters or passed legislation that restricts or bans sweepstakes-style gaming.

Montana’s outright ban, effective October 1, 2025, includes criminal penalties—up to 10 years in prison and $50,000 fines. Mississippi regulators have already issued multiple enforcement actions against VGW’s Chumba Casino brand. In New York, the state Senate passed a bill to prohibit the dual-currency model, prompting VGW’s exit.

VGW has proactively withdrawn or suspended operations in New York, Connecticut, Delaware, and Montana. Still, analysts say the company’s financials remain strong, and its valuation has not materially suffered despite increasing legal headwinds.

Why Escalante Is Pressing Ahead

Industry observers believe Escalante’s push to take VGW private is a strategic move. Going private allows the company to move more nimbly in response to U.S. legal shifts, exiting non-compliant markets without the pressure of public disclosure or shareholder scrutiny.

It also alleviates the cost and complexity of regulatory reporting in Australia. Once restructured under a Guernsey-based entity, VGW would no longer be subject to Australian public market requirements, simplifying its operations as it adapts its sweepstakes model.

The Independent Board Committee supports the buyout, arguing that it provides minority shareholders with a liquidity event. It also mitigates the challenges of listing VGW in an increasingly uncertain environment for sweepstakes operators.

Final Analysis of the Bid

Escalante’s final bid is more than a takeover—it's a defining moment for VGW and the future of real-money sweepstakes gaming. The company remains profitable, but mounting regulatory pressure in the U.S. means adaptability is essential.

A move to private ownership could give VGW the space to evolve—whether by altering its currency model, shifting its market focus, or diversifying into new verticals. Success, however, will depend on how quickly VGW can realign itself to a fragmented and increasingly hostile legal landscape.