Shocking resignation
The President and CEO of pioneering casino sweepstakes brand Chumba Casino has resigned after his arrest in Australia for drugs and domestic violence.
Laurence Escalante’s shocking decision came after he appeared in the Perth Magistrates Court on Friday.
aggravated assault/home burglary, theft, criminal damage
According to the Australian Financial Review, police searched Escalante’s home last Thursday before courts hit the 44-year-old with eight charges, including aggravated assault/home burglary, theft, criminal damage, and a triple count of possessing illegal drugs “with intent to sell or supply.”
Virtual Gaming Worlds, of which Escalante was Chairman and CEO, confirmed that he had taken a leave of absence from his twin roles in a firm whose brands include Global Poker, LuckyLand Slots, and LuckyLand Casino.
VGW under a spotlight
Western Australia police also charged the high-profile gambling technology tycoon, whose wealth is estimated to be around A$4.5bn ($2.9bn), with repeated family violence over six months involving his former partner.
Police allege Escalante assaulted his ex, took her jewelry, and damaged property after gaining entry to her home without permission. The Review reported police later found “a trafficable quantity of cocaine and MDMA” while searching Escalante’s home in Perth.
The entrepreneur behind the global social gambling powerhouse was released on a $100,000 bond, after which he issued a personal statement.
a shock to myself and my family”
“My arrest on these matters has come as a shock to myself and my family,” said Escalante. “From the little I know of the allegations at this stage, I can only say that they are untrue and will be defended.”
In confirming Escalante’s resignation, VGW said it was “aware of the serious charges” its exec was facing, but that they were unrelated to the firm and “personal in nature.” VGW added that it was taking the allegations “extremely seriously” and that it had shifted executives around to cover for Escalante to ensure that it was “business as usual.”
While there has been a spate of high-profile illegal gambling kingpins around the world arrested or executed, as happened last week in China, the fall of a legal gaming tycoon over charges apparently unrelated to gambling will nevertheless have an impact on VGW’s brand image.
Fall in US fortunes
Since Escalante established the company in 2010, VGW’s social gaming and free-to-play online casino products became a global hit, with its international status today reflected by its top-level partnerships, including Ferrari’s Formula One team and the WWE.
VGW has, however, been fighting a losing battle in the US, having exited markets in New Jersey, Delaware, and West Virginia following legal disputes essentially claiming the firm’s free-to-play casino games were a cover for unlicensed gambling.
In May, a lawsuit aiming to shut down VGW in California accused TV actor Ryan Seacrest of promoting illegal gambling in the state via Chumba Casino. In 2022, VGW had pony up over $11m to Kentucky regulators over violations committed by its LuckyLand casino site.
