Virtual Gaming Worlds, the parent company of Chumba Casino and Global Poker, is departing from the Canadian market, closing access to the platforms for Canadian players.
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VGW shareholders approve the takeover offer by founder Laurance Escalante
Shareholders of VGW Holdings approved a takeover offer by company founder Laurance Escalante, making way for the firm to go private amid US regulatory scrutiny.
On August 1, at a shareholder meeting, 85.04% of participants, including 91.31% of minority shareholders, voted in favor of Escalante’s offer to acquire the 30% of VGW shares he doesn’t already own.
The A$5.05 ($3.26) per share bid falls within the A$4.53-5.63 valuation range provided by Kroll Australia. The deal values the company at A$3.2 billion ($2.1 billion).
The court approval is expected on August 5, set to take effect the next day, with full implementation by August 20. The transaction will be conducted via Ocean BidCo Limited, a Guernsey-based special purpose vehicle. Minority shareholders may decide to receive cash, shares in Ocean BidCo, or a mix of both.
The takeover will end the strained relationship between Escalante and minority shareholders, which had escalated in recent months over VGW’s governance practices, valuation, and regulatory risks, particularly in the US.
VGW has faced growing challenges in the US market due to stricter regulations on its dual-currency sweepstakes model. The company exited 11 states, including Mississippi, New Jersey, Connecticut, Delaware, New York, and Nevada, following legislative and enforcement action. Its brands, including Chumba Casino, LuckyLand Slots, and Global Poker, are also not available in Idaho, Michigan, Montana, and Washington. Legal proceedings continue in Alabama, with further regulatory risk in Maryland and West Virginia.
Escalante believes taking VGW private will allow the company to better navigate regulatory risks and operate with greater flexibility.
Sweepstakes casinos, led by VGW Holdings, face a wave of legislative pressure across the US, as some states decide to restrict or ban online sweepstakes casinos.States,...
