Laurence Escalante’s Develops His Second Sweepstakes Casino and Stirs Unrest Amid VGW Shareholders
As reported by the Australian Financial Review, billionaire Laurence Escalante, the mastermind behind Virtual Gaming Worlds (VGW), has ignited a firestorm with his new sweepstakes casino and sportsbook venture, Kickr, launched in 2023.
Kickr’s Ambitions and Competitive Overlap
Kickr, registered in Australia but focused on the U.S., offers a gamified sports betting and casino experience, leveraging the sweepstakes model of virtual “gold coins” and redeemable “sweeps coins.”
Unlike VGW’s brands, Chumba Casino, Luckyland Slots, and Global Poker, which generated $6.13 billion in revenue and $491.6 million in profit for the year ending June 30, 2024, Kickr operates on a smaller scale with a limited product suite.
Escalante, through the Lance East Office, launched Kickr to explore the social sports betting niche. However, shareholders argue Kickr competes with VGW’s portfolio, particularly Global Poker, undermining the parent company’s value as Escalante seeks to buy out their 30% stake at $5.05 per share.
The controversy surfaced when a VGW shareholder revealed Kickr’s existence in a chat group, per the Financial Review. VGW insists Kickr is “completely separate” and “has no impact” on its operations, but investors remain skeptical, especially given Escalante’s May 2025 Telegram rant, where he told critics to “sell their stakes.”
With VGW facing regulatory bans in states like New York and Montana, shareholders fear Kickr diverts focus from navigating these challenges.
Regulatory Risks and Strategic Questions
Kickr operates in over 40 U.S. states, exploiting the same legal loophole as VGW, where sweepstakes casinos skirt gambling laws by offering free-play currencies with cash redemption options.
However, the U.S. regulatory environment is closing in. New Jersey’s July 2025 ban, Arizona’s cease-and-desist orders, and Alabama’s 13 lawsuits against sweepstakes operators are signs of a real crackdown. Additionally, VGW exited New York in August 2025 after a cease-and-desist order from Attorney General Letitia James.
Kickr faces similar risks, as states like Louisiana and Connecticut target the model. Escalante’s formation of the Social Games Leadership Association (SGLA) with PLAYSTUDIOS aims to lobby for regulation over bans, but Kickr’s smaller scale may struggle to withstand scrutiny without VGW’s $5 billion valuation and legal resources.
Investors worry that Kickr’s overlap with VGW could dilute Escalante’s focus, especially as VGW projects a 10-15% earnings drop in late 2025 due to regulatory exits.
The Financial Review notes that $150 million of the loan repays a 2023 debt to HG Vora Capital, further straining VGW’s balance sheet. Shareholders, facing a “take it or leave it” $5.05 offer, see Kickr as a risky distraction.
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