Biggs Alleges ‘Culture Of Corruption’ As Gaming Donor Continues Arizona Operations Despite Shutdown Demand

An online gaming company that contributed $200,000 to political groups supporting Arizona Gov. Katie Hobbs and Attorney General Kris Mayes continued operating in Arizona after regulators sought to shut it down in 2024, while the state publicly pursued competing companies, according to an investigation by The Arizona Republic.

The reporting raises questions about Arizona’s handling of Virtual Gaming Worlds, an Australia-based company owned by billionaire Laurence Escalante, and differences between its treatment and enforcement actions against other online gaming operators.

The Republic reported that the Arizona Department of Gaming’s 2024 action against VGW was not publicly announced. The company continued operating as state officials issued public warnings and cease-and-desist announcements identifying competitors.

"Two online gaming companies faced the same accusations. One left Arizona. The other, which backs the state's top Democrats, remains in business…."

This is EXACTLY how Hobbs and Mayes operate! Shady as …

Get your ballot in for Andy Biggs and Warren Petersen today! pic.twitter.com/mx1f7ptkLp

— Republican Party of Arizona (@AZGOP) October 23, 2026

VGW’s political contributions also benefited Republicans. According to the newspaper, the company donated approximately $140,000 toward efforts to maintain Republican control of the Arizona Legislature, while approximately $10,000 in VGW spending benefited Republican attorney general candidate Warren Petersen.

The reported $200,000 supporting Hobbs and Mayes went to political groups backing the candidates. The reporting does not establish that contributions caused the state’s enforcement decisions.

A June 27, 2025, Department of Gaming announcement publicly identified Stake.US, a competing sweepstakes operator, among seven recipients of cease-and-desist orders. The other named operators included ReBet, Novig, Dallas Safari Club, Fanthem, BettorEdge and High 5.

The department said the companies offered unlicensed gambling products and alleged violations of Arizona law. Its announcement described risks to consumer protection and financial security associated with the unregulated operations.

“Illegal gambling, regardless of the platform or format, has no place in Arizona,” Department of Gaming Director Jackie Johnson said in the announcement, as quoted by the Republic.

Stake subsequently announced its departure from Arizona. Its published terms and conditions list Arizona among the states whose residents are excluded from using the platform.

The Republic reported that Arizona regulators accused both Stake and VGW of promoting gambling, illegal control of an enterprise, and money laundering. 

Both companies operate in the sweepstakes gaming market, offering games involving virtual currencies. The Republic reported that regulators’ action against VGW remained out of public view even as the department publicized its case against Stake.

Asked about its disclosure practices, Department of Gaming spokesperson Jessica Roza said public announcements could interfere with investigations.

“The absence of public announcements or disclosures regarding investigative and enforcement activities should not be interpreted as an absence of action by the Department, as disclosures can prematurely compromise those activities,” Roza told the newspaper.

Hobbs spokesperson Christian Slater pointed to the role of federal authorities in cases involving transnational organizations and cryptocurrency. The Republic reported that the governor’s office did not explain how those considerations distinguished VGW from other offshore operators targeted by the state.

“Don’t know what else there is to explain,” Slater told the newspaper.

Mayes’ office previously cited resource constraints and the complexity of pursuing such cases, according to the Republic. Spokesperson Richie Taylor told the newspaper Oct. 22 that the office had “no additional comments.”

VGW denied asking Arizona regulators to withhold public announcements about the company.

Company spokesperson Michael Bennet said VGW had “made no requests to the Arizona Department of Gaming with regards to the publication of any media releases.”

“As with all stakeholders, we have respectfully engaged in good faith with the Department and cannot speak to their actions or decisions with regards to this engagement or public communications,” Bennet told the Republic.

The reporting drew criticism from Republican gubernatorial nominee Rep. Andy Biggs, who connected the gaming controversy to the earlier investigation involving Hobbs and Sunshine Residential Homes.

“This is the Culture of Corruption created by Katie Hobbs and Kris Mayes,” he wrote in a statement posted to X. “From the taxpayer-funded, $4M pay raise to Sunshine Residential after hundreds of thousands in contributions to now protecting a foreign-owned company running an illegal gambling operation in our state, Hobbs and Mayes will do whatever their donors tell them to do. Voters deserve full transparency about why Hobbs and Mayes have chosen to not enforce the law for another six-figure donor while everyday Arizonans struggle to afford their utility bills and rent.”

This is the Culture of Corruption created by Katie Hobbs and Kris Mayes.

From the taxpayer-funded, $4M pay raise to Sunshine Residential after hundreds of thousands in contributions to now protecting a foreign-owned company running an illegal gambling operation in our state,… https://t.co/4RFHEg7mFC

— Andy Biggs (@andybiggs4az) October 23, 2026

As the California Globe previously reported, the Sunshine controversy concerned political contributions benefiting Hobbs and Arizona Democrats alongside increases in Department of Child Safety payments to the foster-care provider. State Rep. John Gillette (R-LD30) later disclosed that he had referred the matter to federal authorities more than 90 days before Mayes announced her decision against prosecution.

Mayes declined to prosecute Hobbs following the state investigation. In earlier Globe coverage of the attorney general debate, Mayes defended the work of career prosecutors and investigators. Her office said the investigation did not establish the quid pro quo needed to support a bribery charge.

Petersen also criticized Mayes over the VGW reporting, despite the company’s spending benefiting his candidacy.

“Mayes is cherry-picking the laws she wants to enforce and protecting her political allies, instead of standing up for Arizonans,” Petersen told the Republic.

Mayes campaign spokesperson Delaney Corcoran responded by criticizing Petersen’s opposition to enforcement against prediction markets, saying Mayes had focused on holding those businesses and illegal gambling operators accountable. Hobbs campaign spokesperson Michael Beyer responded to Biggs by attacking his political record.