Laurence Escalante’s VGW hooks up with Ferrari in multimillion-dollar sponsorship deal for Formula 1 racing

WA social gaming billionaire Laurence Escalante has parlayed his penchant for fast cars into a multimillion-dollar sponsorship with the biggest name in motorsport, Ferrari. Under what could be the biggest sponsorship deal struck by a WA company, Mr Escalante’s Virtual Gaming Worlds has signed up to Ferrari as a major partner of its Formula 1 team. The Perth-founded company is in select company, joining global energy giant Shell and Spanish bank Santander in Ferrari’s premium sponsorship category, ahead of lesser contributing partners such as Ray-Ban, Amazon, Giorgio Armani and Bang & Olufsen. The partnership will see the Ferrari F1 team’s cars, drivers and crew carry the VGW brand for the life of the multi-year sponsorship, beginning with this weekend’s first race of the new season in Bahrain. It means the company will be promoted to a global TV audience estimated at more than two billion. Typically, the cost of the sponsorship was not disclosed but it would certainly be in the millions of dollars, and potentially the tens of millions. VGW, which spent $235m in 2021-22 promoting its games on social media, said the deal “brings together two global brands with a shared passion for harnessing the power of technology, innovation and teamwork” and would support the growth of the company’s online games in its major market of the US. “We are excited to partner with Ferrari, one of the world’s most iconic global brands,” Mr Escalante said. “With such a rich history, success in motorsport and a brand synonymous with winning, achievement, passion and luxury, we look forward to working together and our next chapter of growth,” he said. “F1 is a truly global sport with massive reach that has experienced amazing growth in recent years, particularly in the US, and there’s no bigger brand than Ferrari.” VGW has emerged from COVID-19 as one of Australia’s most profitable privately-owned companies, last financial year posting a record $454 million profit on a 54 per cent leap in revenue to $3.45 billion. VGW’s games, which include Chumbo Casino and and Global Poker, use a sweepstakes model that allows the company to comply with laws banning online gambling in most of the US. Players use real money to buy virtual currency that comes with sweepstakes credits that can be redeemed for cash. The company’s financial success has generated a dividend windfall for majority owner Mr Escalante since its first payout in mid-2020, with the former financial planner pocketing more than $500m. Also, the value of his 66 per cent stake in VGW is estimated to have soared to more than $2b. Mr Escalante has conspicuously splashed his wealth on supercars, a jet, yacht and luxury property, with the purchases often coming to light via social media posts. Ferrari welcomed the VGW sponsorship in its own statement. “As leaders in the gaming technology sector, they share our passion for innovation and thinking outside the box,” chief racing revenue officer Lorenzo Giorgetti said. “We look forward to working with them in offering new assets and experiences to our loyal and passionate tifosi.” The tie-up comes just a few months after a video seemingly showing Mr Escalante using his phone while speeding through the Graham Farmer Freeway tunnel in an open-top Ferrari surfaced on his social media. The video showed a driver, understood to be Mr Escalante, filming while behind the wheel. He then speeds up and passes several cars, with the dashboard of his sportscar revealing he is travelling at 100km/h — 20km/h over the speed limit on that particular part of the freeway. The 16-second clip ends as the car speeds up again leaving the tunnel, and travelling north.