Laurence Escalante’s VGW on track to crack $5 billion in revenue after record first half

Billionaire Laurence Escalante’s lucrative online casino empire is on track to crack $5 billion in annual revenue for the first time, despite moving to temper expectations about its second-half growth.

Virtual Gaming Worlds’ parent company, the privately-owned VGW Holdings, on Monday reported a 29 per cent jump in first-half revenue to $2.8b, with net profit up 23 per cent to $207 million.

The fast car-loving Mr Escalante owns 70 per cent of the US-focused VGW and has pocketed hundreds of millions of dollars in dividends since the Perth-based group’s revenues lifted off about five years ago.

He said on Monday he was “delighted” to deliver “another set of solid first-half results . . . headlined by strong revenue and profit growth”.

VGW has recorded bigger profits but the group is now funnelling more cash into the promotion and marketing of its games, technology and staff to pull in more customers and drive revenue higher.

The company’s is one of the country’s fastest-growing businesses, after explosive growth during COVID-19 restrictions. In the same half-year in 2018, VGW turned over just $173m. Three years later, it was doing $1.54b.

VGS Mr Escalante acknowledged “increases in some expenses as we continue to invest in our people, customers and products”.

“But overall, this was a pleasing outcome given the more challenging macroeconomic environment and increased competition.”

“While only a few months into the calendar year, we’ve had a positive start to 2024 and the second half of our financial year, seeing top-line growth through January and February.

“Given the uncertain external operating environment, whether that be the economic outlook or geopolitical tensions, these trends may or may not continue for the remainder of the financial year.

“However, over the long term, our outlook remains bright and we are well positioned to execute.”

More to come.