Newly filed accounts show Virtual Gaming Worlds, owner of sweepstakes giant Chumba Casino, generated A$7.3 billion in revenue last financial year — just as founder Laurence Escalante completes a buyout to take the company private and shield it from a wave of US prohibition bills.
Virtual Gaming Worlds (VGW), the Australian operator behind sweepstakes casino brands Chumba Casino and Global Poker, reported revenue of A$7.3 billion ($5.2 billion) for the year ending June 30, 2025, according to accounts filed on May 22 with the Australian Securities and Investments Commission (ASIC). The disclosure lands as founder Laurence Escalante closes a deal to buy out minority shareholders and take the company fully private — a move he has framed as a defence against mounting regulatory pressure in the United States.
Key Facts:
• VGW revenue reached A$7.3 billion ($5.2 billion) for the year to June 30, 2025, up 19% — ASIC filing
• Chumba Casino alone generated A$5.2 billion ($3.7 billion); group profit rose 33.5% to A$656 million — ASIC filing
• Escalante’s family office is taking VGW private at a reported A$3.2 billion ($2.3 billion) valuation, backed by 91% of minority shareholders — Gambling Insider
• Five US states have passed sweepstakes prohibition bills, potentially cutting VGW’s market access from a wider base to far fewer states — iGaming Business
What did VGW’s accounts reveal?
The figures confirm VGW as one of the largest privately held operators in online gaming. Revenue climbed 19% year on year, while profit jumped 33.5% to A$656 million. Chumba Casino, the company’s flagship US sweepstakes brand, accounted for the bulk of the top line at A$5.2 billion. Sweepstakes casinos operate in a legal grey zone: players buy virtual currency that can, under “no purchase necessary” rules, be redeemed for cash prizes, allowing operators to offer casino-style games in states where online casinos are not licensed.
Why is Escalante taking the company private?
Escalante’s family office, Lance East Office, is acquiring the shares it does not already own at a reported A$3.2 billion valuation, lifting his stake to 100%. Shareholders approved the buyout with 91% of minority investors in favour. The company has acknowledged growing regulatory risk tied to its US operations, and plans linked to the privatisation include relocating VGW’s domicile from Australia to Guernsey, a jurisdiction with lighter tax treatment.
The timing is not coincidental. Indiana, Maine, Tennessee, Oklahoma and Louisiana have all passed bills restricting or banning sweepstakes-style gaming, and further states are weighing similar measures. Going private removes the disclosure obligations and shareholder scrutiny that come with a wide investor base, giving Escalante more room to restructure as those markets close.
What does it mean for players and regulators?
For the wider industry, VGW’s scale underlines how large the sweepstakes model has grown while sitting outside the licensed iGaming framework that governs operators in states such as New Jersey and Michigan. Consumer-protection advocates argue that sweepstakes players often lack the deposit limits, self-exclusion tools and oversight mandated for licensed casinos. Regulators in several states have cited those gaps in pushing prohibition, and the American Gaming Association has urged clearer lines between regulated iGaming and sweepstakes products.
VGW already exited Canada in August 2025, and the spread of US bans suggests its addressable market is narrowing even as revenue hits record highs. Whether privatisation lets the company adapt faster — or simply insulates a shrinking footprint — will be the story to watch through the rest of 2026.
FAQ
Q: Is Chumba Casino legal in the US?
A: Chumba operates under the sweepstakes model, which is legal in many states but has now been banned or restricted in Indiana, Maine, Tennessee, Oklahoma and Louisiana.
Q: How much is VGW worth?
A: The buyout values the company at a reported A$3.2 billion ($2.3 billion), though it generated A$7.3 billion in revenue last financial year.
Q: Why move VGW’s domicile to Guernsey?
A: The company has cited a more favourable tax and regulatory environment as part of its plan to operate privately under Escalante’s full ownership.
For related coverage, see our report on the record Fertitta–Caesars casino deal and how a California court ruling reshaped state gambling rules.
Source: Gambling Insider.
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