Laurence Escalante is seeking to take control of Virtual Gaming Worlds, the online gambling business he founded and turned into a global player, by buying out smaller investors in a deal valuing the company at $3.2 billion.

Escalante already owns 70 per cent of Virtual Gaming Worlds, and has grown his fortune by pioneering the use of a loophole in regulations in the United States that allows the company to deliver poker machine-style gambling to millions of Americans, initially on Facebook.

It now runs brands such as Chumba Casino, Luckyland Slots and Global Poker that have successfully taken share from mainstream operators.

While Virtual Gaming Worlds has grown significantly, it faces regulatory issues in the US, where some states are moving to introduce new rules against its business, and investor disquiet about its transparency.

The Australian Financial Review reported last month that, in an expletive-ridden rant, Escalante told investors they should sell their shares if they did not trust him after criticism that he was moving too slowly to share more financial information with shareholders. Escalante, in a private Telegram chat group for investors, accused some shareholders of “talking shit” about him, telling them to “shut the f— up” and “get off my register”.

On Monday, Virtual Gaming Worlds said Escalante’s family office, known as Lance East Office, had offered $5.05 a share to acquire the remaining shares in the company through a special purpose company set up for the transaction, less any dividends paid. That was, the company said in a statement, about three times its earnings in the last financial year.

Shareholders will also have an option to continue their investment by receiving shares in Escalante’s special-purpose company. The deal, which the board is recommending shareholders accept, will need to be approved by shareholders, not including Escalante and his associated entities.