VGW Founder Laurence Escalante: 17 Charges, A June Court Date, and What Happens Next

The Allegations

According to court documents obtained by the Australian Financial Review (subscription required), the allegations stem from the night of January 26, 2026 — Australia Day — when police received a complaint from a 24-year-old woman described in court as Escalante’s former partner. She alleged Escalante forced his way into her Perth home, assaulted her and removed approximately $150,000 worth of jewelry, including a Cartier watch and bracelets. He also allegedly destroyed a $66,000 Hermès bag with scissors before leaving.

The Australian Financial Review reported that police allege the January 26 incident was not isolated, but part of a pattern of alleged family violence involving the same woman dating back to June 2025.

Three days after the alleged assault, Western Australia Police executed a search warrant at Escalante’s Perth residence. Officers found, per the Australian Financial Review, 30 grams of cocaine, 18 grams of methamphetamine and 12.2 grams of ketamine. A $25,000 Rolex watch, Cartier bracelets and diamond earrings were also recovered from a safe in his bedroom.

WAToday, the Nine Entertainment-owned Western Australia news publication, reported that at his first court appearance on January 30 Escalante was granted bail under conditions requiring twice-weekly police reporting and a full restraining order barring any contact with the alleged victim. His lawyer, Simon Freitag, sought a suppression order on the charges, citing a claimed risk of kidnapping and extortion from organised crime. The court denied the application.

At a second hearing on February 26, prosecutors added nine further charges — three counts of possessing a prohibited drug and six counts of unlawful possession of controlled or prescription substances — bringing the total to 17 criminal charges, as reported by Yahoo News. At that same hearing, Business News WA reported that Western Australia Police Commissioner Col Blanch publicly confirmed that police “have the option to seize assets,” adding: “But ultimately, at the end of any of those investigations, we do have to link the profit to the use or sale of drugs.” Under Western Australian law, assets linked to drug trafficking offences can be confiscated regardless of whether they were legally obtained.

In a statement reported by Forbes, Escalante said: “My arrest on these matters has come as a shock to myself and my family. From the little I know of the allegations at this stage, I can only say that they are untrue and will be defended. I ask that both mine and my family’s privacy be respected, and thank them for their support.”

VGW’s Response

VGW issued a formal statement following the arrest, confirmed by ABC News Australia and The Straight, an Australian gambling industry publication:

We are aware of the serious charges made against Mr Escalante. These are unrelated to VGW and personal in nature. However, we can confirm Mr Escalante will be taking a leave of absence from his role as CEO and Executive Chairman of VGW. In the interim, we have installed experienced leadership from our existing executive team to take on those responsibilities, and it remains business as usual for VGW. The company takes any allegations of this nature extremely seriously. As this is a private matter and remains before the courts, we cannot comment further.

Gaming Intelligence reported that Mats Johnson was appointed Acting CEO. Previously VGW’s president and chief marketing officer, Johnson has more than a decade of experience at the company. VGW’s corporate website confirms he remains in the role.

Who Is Laurence Escalante?

Escalante founded VGW in Perth in 2010, building the company from a small startup into one of Australia’s most profitable technology businesses, as detailed by Forbes. VGW’s sweepstakes casino model — which uses a dual-currency system allowing players to participate in casino-style games and redeem prizes — found its largest audience in the United States, where the company’s brands serve an estimated one million daily users, according to The Straight. The company employs more than 1,000 staff globally.

Yogonet International reported that VGW posted AU$6.1 billion in revenue for fiscal year 2024, up 27% year-on-year, with net profit of AU$491.6 million. The Australian Financial Review has placed Escalante’s personal net worth at AU$4.5 billion.

In August 2025, just months before his arrest, Escalante completed a AU$3.2 billion buyout of VGW’s minority shareholders, taking the company fully private. As iGaming Expert reported, 91% of minority shareholders voted in favour of his AU$5.05-per-share offer, conducted through a special purpose vehicle called Ocean BidCo Limited, registered in Guernsey and established through his family office, Lance East Office.

The period leading up to the buyout had been turbulent. Yogonet International reported that Escalante made a profanity-laced outburst in a private investor chat group in the months before the buyout, telling dissatisfied shareholders to sell their stakes if they lacked confidence in his leadership. Shareholders had also raised concerns over his family office’s ownership of Kickr Games, a competing sweepstakes venture they viewed as a conflict of interest, as reported by iGaming Expert. VGW told the Australian Financial Review at the time that Kickr was “completely separate” and had “no impact” on VGW or its operations.

Writing to shareholders at the time of the buyout and reported by iGaming Expert, Escalante said: “The regulatory and competitive environment in which our business operates is becoming increasingly uncertain and the risks have markedly increased over the past 24 months. While I remain confident in VGW’s business, we are also conscious of the risks in the regulatory and competitive environment in which we operate.”

What Happens Next

Escalante is due back at the Perth Magistrates Court on June 18, as reported by Yahoo News. No trial date has been set and no plea has been entered. VGW continues to operate under interim leadership per Gaming Intelligence.

Escalante is presumed innocent of all charges. This publication sought comment from VGW and from Escalante’s legal representative Simon Freitag and had not received a response at time of publication.

Sources