Want to get more Covers content? Add us as a preferred source on your Google account here.
Major online gaming company Virtual Gaming Worlds (VGW) announced Friday that its CEO, executive chairman, and founder, Laurence Escalante, has resigned.
Key Takeaways
- VGW founder and CEO Laurence Escalante has resigned after spending months on leave following criminal allegations.
- Acting CEO Mats Johnson will lead the company while VGW conducts a global search for its next chief executive.
- Escalante’s departure comes as the sweepstakes casino industry faces growing regulatory scrutiny in the United States.
The news comes amidst increasing scrutiny and scandal that has included assault and drug charges earlier this year.
Escalante, 44, has been on a leave of absence since January, when he was found to have allegedly broken into his ex-partner’s home and assaulted her, damaged property, and stolen jewelry.
“Laurence started VGW 16 years ago and grew it from an innovative idea in Perth into one of Australia’s largest unlisted businesses and overseas success stories,” said Mats Johnson, who will serve as acting CEO, having previously served as a senior executive. “He pioneered a new social gaming category that is now a major market in the U.S., the largest consumer and gaming market in the world, delivering world-class entertainment to millions of players.
“We thank Laurence for these and many other achievements and contributions at VGW, and for the confidence he is showing in us – and all our 1,300 team members – to continue VGW’s successes in the future.”
Per VGW, Johnson will serve in the role as a global search is undertaken to find the company’s next leader.
Changing landscape
Escalante’s exit creates something of a precarious situation for a leader in the sweepstakes casino marketplace.
The Australian business executive’s departure comes amidst a period of continued scrutiny for the industry, with the vast majority of its customer base located in the United States.
VGW was also recently taken private by Escalante’s family office last year, with the former CEO having owned upwards of 70% of the shares before the transaction.
This article originally appeared on Covers.com, read the full article here and view our best betting sites or check out our top sportsbook promos.
