The sweepstakes casino industry has faced growing regulatory scrutiny in recent months, prompting many operators to implement significant corporate governance changes. Virtual Gaming Worlds (VGW), the parent company behind popular sweepstakes brands like Chumba Casino and Luckyland Slots, is the latest to adjust its leadership structure.
In early November, VGW announced the appointment of Angus Tiet as its new chief financial officer (CFO). Tiet, who previously held executive roles at Aristocrat and Tabcorp, will succeed Guy Wylie, who served as CFO at the company since November 2023.
“Angus joins as we explore several opportunities and projects, such as investing in a new centralised tech platform and considering the launch of new brands,” Laurence Escalante, the billionaire owner of VGW, told reporters. “Angus’s experience will be of great value.”
Tiet's appointment to Virtual Gaming Worlds comes at a pivotal moment, as the company navigates the growing challenges and increasing investigation surrounding the sweepstakes business model.
Having spent over a decade in the iGaming industry, Angus Tiet brings an almost unrivalled wealth of experience to the VGW conglomerate. Tiet, a chartered accountant, began his career at Aristocrat as head of finance for the Asia-Pacific region. He would then go on to serve as CFO and senior vice president strategy at the Australian gaming company.
Mr Tiet further enjoyed brief stints as senior vice president strategy at Pixel United and chief strategy and ventures officer at Tabcorp. Most recently he was director at Dabble, a subsidiary of Tabcorp. His time at Tabcorp is mostly marked by the strategic advisory role he played in the subdivision of the company’s lottery business as well as important corporate restructuring deals.
Interestingly, Tiet is not the only high-ranking officer who has joined the board at Virtual Gaming Worlds. Back in September, VGW appointed Graciella Anthony as head of live casino, despite the fact that none of the company’s brands had live dealer options.
Anthony was formerly head of live and table games at Entain, and will be pivotal to helping VGW’s social casinos build live gaming products. “Live social dealer is not an uncommon feature among social casinos, which we continually consider and evaluate,” a spokesperson told reporters.
Founded in 2010 by entrepreneur Laurence Escalante, Virtual Gaming Worlds has aimed to establish itself as a market leader in both Australia and North America. In its early years, the company capitalized on a loophole in US federal legislation, allowing it to offer online casino-style entertainment with real-money rewards in states where iGaming was otherwise prohibited.
VGW would go on to build a super profitable sweepstakes model through its subsidiaries, including Chumba Casino and Luckyland Slots. In the financial year ending June 30, the company reported a revenue of $6.13 billion, marking a 27% growth from 2023. It also saw profits soar from $377.6 million to $491.6 million.
However, the industry's fortunes took a significant downturn after the American Gaming Association (AGA) began targeting the legislative loophole that underpins the sweepstakes business model. This move, coupled with the efforts of sports betting lobbyists, traditional casino operators, and tribal leaders, has intensified the regulatory pressure on sweepstakes casinos.
To compound these challenges, operators have faced cease-and-desist orders from various state governments, forcing many to curtail their operations. Additionally, customers have initiated class-action lawsuits, citing state-specific illegal gambling laws, seeking refunds for their deposits. VGW currently faces at least 11 federal cases across different states in the US.
Reacting to the opposition faced, a spokesperson for VGW said:
“The increase in participants and our position as an innovative market leader has resulted in some negative commentary from specific groups with clear agendas making baseless claims and misleading allegations which we reject entirely,” a spokesman for VGW said on Sunday. “We continue to have full confidence in our compliance with all laws and regulations where we operate, and remain confident about the medium to long-term opportunities for our business.”
The company will hope that the addition of veterans like Tiet will help tighten its regulatory compliance while retaining its position as the industry’s leader.