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State of Play’s TL;DR
- An Arizona Republic investigation says state regulators took action against VGW in 2024 without a public announcement.
- At the same time, Stake.US and other operators were publicly named in 2025.
Arizona regulators are facing new scrutiny after a report said Virtual Gaming Worlds (VGW) kept operating in the state following a 2024 enforcement action that was not publicly announced, while Stake.US and six other operators were later named in a public cease-and-desist announcement.
The reporting, first published by The Arizona Republic and cited by California Globe, raises fresh questions about how Arizona handled alleged unlicensed online gaming operators, including whether similar cases were treated differently. VGW donated $200,000 to political groups supporting Gov. Katie Hobbs and Attorney General Kris Mayes.
Report contrasts VGW treatment with Stake.US and other operators
According to the report, the Arizona Department of Gaming took action against VGW in 2024, but that step was not made public. By contrast, on June 27, 2025, the department publicly announced cease-and-desist orders against Stake.US and six other operators: ReBet, Novig, Dallas Safari Club, Fanthem, BettorEdge, and High 5.
The department said those companies offered unlicensed gambling products and alleged violations of Arizona law. The Republic reported that regulators accused both Stake and VGW of promoting gambling, illegal control of an enterprise, and money laundering.
Stake later said it was leaving Arizona, and its terms and conditions now list Arizona among excluded states.
Department of Gaming Director Jackie Johnson said in the 2025 announcement:
“Illegal gambling, regardless of the platform or format, has no place in Arizona.”
Political donations and official responses draw attention
VGW is an Australia-based company owned by billionaire Laurence Escalante. Beyond the reported $200,000 given to groups supporting Hobbs and Mayes, the article says VGW also donated about $140,000 toward efforts to maintain Republican control of the Arizona Legislature and about $10,000 that benefited Republican attorney general candidate Warren Petersen.
Department of Gaming spokesperson Jessica Roza said public announcements can interfere with investigations.
Hobbs spokesperson Christian Slater said federal authorities can play a role in cases involving transnational organizations and cryptocurrency, adding,
“Don’t know what else there is to explain.”
A spokesperson for Mayes’ office, Richie Taylor, told the newspaper there were “no additional comments.”
VGW spokesperson Michael Bennet said the company “made no requests to the Arizona Department of Gaming with regards to the publication of any media releases.”
Based on reporting by Matthew Holloway for California Globe.
