VGW, the company behind major online gaming brands Chumba Casino and LuckyLand Casino, is set to part ways with its founder, chair & CEO, Laurence Escalante. This comes amid legal trouble faced by the outgoing executive.
Escalante Has Been Embroiled in Legal Trouble Since Alleged Attack on Ex-Partner
Escalante, who was already on a leave of absence from his chair & CEO responsibilities, is now set to part ways with VGW. While the company has become a gaming powerhouse, Escalante has been embroiled in trouble due to several criminal charges he faces.
Earlier this year, Escalante allegedly attacked his ex-partner, breaking into the 24-year-old’s house, wreaking havoc, and stealing expensive items he had previously gifted her. These included expensive watches and jewelry. The alleged attack came shortly after the two ended a long-term relationship.
While investigating Escalante’s home in relation to the complaint, they also discovered large amounts of illegal drugs, including cocaine and MDMA.
As a result, the VGW founder was charged with assault and drug offenses.
VGW Also Faces Controversy
In addition to that, Escalante’s decision to cut his ties with VGW comes around the same time a report scrutinized VGW’s workplace culture. Published several days ago, the damning report alleged that bullying, sexual harassment, and alcohol abuse are commonplace at the company.
Escalante was approached by Australian news outlets but declined to comment on the matter due to his personal legal troubles.
VGW, on the other hand, emphasized that it has been making significant governance improvements these past few years in hopes of preventing issues such as the ones described above.
In any case, Escalante’s exit from VGW will mark a period of significant change for the sweepstakes company.
Sweepstakes Were Banned in Tennessee
Speaking of the controversial sweepstakes sector, Tennessee Governor Bill Lee recently signed Senate Bill 2136 into law. As a result, the state adopted a harsh no-sweepstakes stance.
The broader sweepstakes sector has been under fire in the USA, with many traditional casino industry stakeholders accusing sweepstakes companies of being essentially unlicensed online casinos that exploit legal ambiguities.