A Split Decision
VGW founder and billionaire majority owner Laurence Escalante has secured approval from 91% of minority shareholders for his A$3.2B (€1.8B) take-private scheme at A$5.05/share, yet the mood was far from unanimous.
Some shareholders welcomed the exit, others are uneasy about future valuations and governance, especially with Escalante’s reported frustrations around public accountability.
The Deal at a Glance
Laurence Escalante, VGW’s billionaire majority owner, is leading the charge to take the company private through his family owned Ocean BidCo Limited. He’s offered A$5.05 per share, valuing VGW at A$3.2 billion to acquire the remaining ~30% held by minority shareholders.
Independent valuation from Kroll placed VGW at A$4.53–A$5.63 per share, which confirms that Escalante’s offer was “fair and reasonable.” Shareholders were given a choice: accept cash, convert their holdings into BidCo shares, or a combination of both. This offers them real flexibility depending on whether they want to cash out or stay invested.
At a shareholder meeting on August 1, approximately 91% of minority holders gave the scheme a thumbs-up. The Independent Board Committee, led by chair Mike Symons, also endorsed the deal, and publicly thanked shareholders for their support. With the Federal Court expected to approve the resolution by August 5, the deal is set to close by August 20.
Shareholder Sentiment: Support and Skepticism
Although the buyout passed with strong support, not all of the VGW’s minority shareholders were kicking their legs up in excitement
Some investors welcomed the clean exit and the immediate liquidity that Escalante’s A$5.05-per-share offer provided, especially given the increasing regulatory sanctions VGW is facing in the U.S. Others, however, had hoped for something higher, betting on the company’s long-term potential to deliver a larger payday.
For those opting to convert their holdings into shares of the new private entity, Ocean BidCo, there’s a lingering sense of unease.
There are concerns about the limited future liquidity, reduced transparency, and uncertainty about valuation that often comes with going private.
Governance Tensions & Conflict Red Flags
Reports suggest Escalante had reached his breaking point with the demands of public ownership. In a private Telegram group, he allegedly told dissenting shareholders: “If you don’t trust us, exit.”
That blunt message seems to have stirred unease, particularly around his connection to Kickr Games, a separate operation that is focused on similar sweepstakes casino mechanics. Investors worry about potential internal competition and whether key resources could be split between VGW and Kickr.
Why This Exit Makes Sense… Sort of
VGW is currently having a very tough time with the law, facing multiple lawsuits, bans, and enforcement actions across the U.S. As a public company headquartered in Australia, it’s also tied to strict reporting rules, which means transparency, but also lots of headaches.
By going private and shifting to Guernsey, Escalante frees the company from those public reporting hassles. This gives VGW more freedom to scale back or exit U.S. markets where regulators are closing in, without having to explain every move to markets and analysts.
What Happens Next?
With shareholder approval in the bag, the last piece is court clearance, which is expected by mid-August. Once that happens, the deal officially closes on August 20. VGW will re-emerge as a Guernsey-based private company, fully owned by Escalante’s Ocean BidCo.
The company will keep its operations in Perth, but without the public-facing rules and transparency that came with being an unlisted public firm. It’s a new chapter, this time quieter, leaner, and a little more under-the-radar.
What Lies Ahead
Escalante’s move could reshape how sweepstakes casino businesses adapt—by going private to sidestep regulatory and legal pressures. But that route comes at a cost: trading public liquidity for long-term uncertainty.
For VGW’s minority investors, the mood is split. Some were eager to cash out, while others are uneasy about giving up future upside. It’s a classic tension in take-private deals. Still, for Escalante, the combined benefits of full control and fewer compliance hurdles may be worth the trade-off.
Bottom Line: VGW may be leaving the public eye, but not all shareholders are comfortable with the retreat. What looks like control and flexibility to one investor feels opaque and uncertain to another, and how that tension resolves could determine VGW’s real outcome.
Blaise Luis
