Recently released data has revealed that Perth-founded Virtual Gaming Worlds (VGW) is now one of the ten biggest Australian private companies in terms of revenue.
VGW, which has around 200 staff based in Perth, hit a record $3.1 billion in revenue this year, according to IBISWorld’s Top 500 Private Companies.
Last year, the company recorded more than $2.2 billion in revenue, with the Port Hedland-born founder Laurence Escalantle pocketing a nice dividend of over $40 million, as the owner of about 65% of the company.
By comparison, Perth-founded Sydney-based tech darling Canva has annualised revenue of just over $1 billion.
Founded in 2012, originally from a shared desk at Spacecubed, VGW hosts social casino visual games, with the most notable being Chumba Casino and Luckyland Slot.
Customers of VGW use real money to buy virtual coins to play. It operates under a sweepstakes model that allows users to win promotional sweepstakes that can be then used to redeem cash. This allows the company to comply with numerous US laws on internet gambling, which is banned in most states.
“Well done to our VGW team! Too many to list, so proud of us all. Onwards and upwards,” Mr Escalante wrote on Instagram upon the release of the IBIS report.
Overseas revenue
The highly profitable VGW is likely headed for a public listing, on a North American exchange. Shareholders of the company include more than 700 staff based in offices across Perth, Sydney, Malta, San Francisco and remote workers in other locations.
Notably, this revenue comes from overseas markets, mainly the United States, reiterating the fact that Australian companies don’t have to be in the mining or traditional service sectors such as tourism and education to make billions from exports.
The average revenue figure for the companies on the IBIS list is $553 million, 10.7% higher compared to last year. Gina Rinehart’s Hancock Prospecting took out the top spot – not surprising given Ms Rinehart is the richest Australian – with Anthony Pratt’s Visy packaging empire in second place.
Top 10 biggest Australian companies by revenue
- Hancock Prospecting
- Visy
- CBH Group
- HCF
- Linfox
- Virtual Gaming Worlds
- Peregrine Corporation
- EY
- ANZ Hospitals
- Hutchies
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