VGW founder and CEO Laurence Escalante is aiming to gain full ownership of the company by buying out investors who currently hold the remaining 30% stake.
VGW, which operates major sweepstakes platforms Chumba Casino, Luckyland Slots, and Global Poker, is offering shareholders AU$5.05 (US$3.28) per share or the option to roll their shares into a specially created bid vehicle. This offer values the company at approximately AU$3.3 billion (US$2.14 billion).
The move comes as VGW seeks to strengthen its position in the U.S., where the legality of sweepstakes casinos is under increasing scrutiny. Louisiana is on the verge of banning such platforms, joining Montana and Nevada, while Connecticut awaits the governor’s signature on similar legislation. Meanwhile, New York and New Jersey also have related bills advancing, prompting VGW to begin winding down some of its sweepstakes offerings in New York.
VGW outlined the buyout process on its website, revealing that the special purpose bid vehicle was initiated by Lance East Office (LEO), which approached the company last November. In response, VGW formed an Independent Board Committee (IBC) and appointed Mike Symons of Canterbury Partners as an independent non-executive director to safeguard shareholder interests.
LEO initially submitted a non-binding proposal offering between AU$3.50 (US$2.27) and AU$4 (US$2.60) per share, but the IBC rejected it, arguing the valuation was too low. Subsequent negotiations led to LEO increasing its offer and introducing the option for shareholders to participate in the bid vehicle.
