Virtual Gaming Worlds founder Laurence Escalante has resigned as CEO and executive chairman of the Perth-based social gaming company he built from the ground up.
The company confirmed on 3 July 2026 that the decision took effect immediately, ending a leadership arrangement that had been in question for months.
Escalante had been on a five-month leave of absence since January, after VGW became aware of charges brought against him by Western Australia Police.
The charges include family violence, burglary, and drug possession offences in Perth, though Escalante has not yet entered pleas in the case.
He stated in January that the allegations were untrue and that he intended to defend them, a position that has not changed since his departure was confirmed.
The case is scheduled to return before Perth Magistrates Court in August, meaning legal proceedings will continue well after his exit from the business.
VGW said the matters were personal in nature and unrelated to the operations of the company, which employs around 1,300 people globally.
Mats Johnson, who stepped in as acting CEO when Escalante first went on leave in January, will retain the role while VGW conducts a global search for a permanent chief executive.
Johnson acknowledged the founder’s legacy in a statement, saying: “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 1,300 team members – to continue VGW’s successes in the future.”
Escalante founded VGW in 2010, building it into a significant operator in the sweepstakes casino space with key brands including Chumba Casino, LuckyLand Slots, and Global Poker.
Those platforms offer casino-style games using virtual currencies and sweepstakes promotions, attracting a customer base concentrated primarily in the United States.
VGW also operates across smaller markets including Australia, Malta, the Philippines, Poland, and a number of other countries.
The company was taken private last year by Escalante’s family office, Lance East Office, with Escalante and related entities having owned around 70% of shares prior to that transaction.
The shareholder-approved scheme valued the business’s equity at approximately A$3.2 billion, with Ocean BidCo acquiring the remaining shares on behalf of the family office vehicle.
The resignation also arrives during a period of growing regulatory pressure on the sweepstakes casino sector across the United States, adding further complexity to VGW’s near-term outlook.
California enacted a law last year targeting online sweepstakes games that use dual-currency systems, simulate gambling, and offer cash or cash-equivalent prizes.
VGW had already begun adjusting its operations ahead of tightening rules, having ended casino-themed social games in Nevada and Delaware and begun phasing out sweepstakes promotions in New York.
Friday’s announcement made no reference to those regulatory developments, focusing instead on the leadership transition and the global CEO search now underway.
Johnson will continue working alongside VGW’s existing executive leadership team until a permanent replacement is formally appointed.
