Embattled online gaming mogul Laurence Escalante faces more legal troubles, with a writ lodged in the WA Supreme Court revealing he is being sued for up to $60 million over an alleged breach of contract.

Escalante is the owner of the Virtual Gaming Worlds empire, which operates a network of casino-style online games in the United States, and is currently facing a number of criminal charges, including persistently engaging in family violence and criminal damage or destruction of property, as well as drugs charges.

Now, the tech billionaire and his company are being hauled to court by investment firm Akru Jessy Capital Pty Ltd and its principal, Perth investor Jasveer Jessy.

However, a VGW spokesperson told this masthead the claims were “without merit” and would be “strongly defended”.

At the heart of the dispute is an alleged breach of corporate mandate agreements, fee contracts, buyback deeds, and dividend distributions entered into between 2015 and 2020 relating to capital-raising and financial advisory services provided to VGW Holdings, in the sum of almost $20 million.

Jessy and AKRU allege they are owed a capital buyback principal based on 2.6 million VGW shares valued at $4.60 per share and collectively worth $11.96 million, in addition to unpaid historical dividends valued at $6.77 million, unpaid options at $286,800, and unpaid bridge capital fees of $147,000.

However, the investment firm is also seeking an alternative claim allegedly valued at $59.86 million based on damages for breach of contract arising from an alleged failure to deliver 6.6 million performance shares or options as agreed, calculated at market value.

Jessy and AKRU also proposed a secondary alternative claim, based on damages for an alleged breach of a binding settlement agreement made in 2020 that was allegedly rebuffed by Escalante.

Under that agreement, they seek 500,000 company shares and 500,000 personal shares transferred by Escalante, and “a cash sum exceeding $500,000”.

According to the writ, Jessy and AKRU are also seeking payment of fair market remuneration on a quantum meruit basis – also known as fair pay – for work including financial advice, option structuring, and capital raising of more than $10.9 million between 2014 and 2018.

As a result of that work, the writ claims, VGW and Escalante “received and retained substantial liquidity and commercial benefit without providing fair remuneration”.

That was strongly disputed by VGW in a statement provided by a spokesperson.

“All fees and compensation for the historical services provided by the plaintiffs – dating back more than a decade – were paid at the time in accordance with our agreements with the plaintiffs in 2015,” the spokesperson said.

“VGW stands by its practises, meets all its obligations, and believes this is a baseless claim.”

Last month, Escalante resigned as chairman of the online casino empire he founded after being charged with domestic violence and drug offences earlier this year.

Escalante ranked 35th on the Australian Financial Review Rich List last year, with a net worth of $4.5 billion, up 20 per cent on the previous year.

Also this year, it was announced VGW had inked a “multi-year partnership” with US wrestling behemoth WWE for the gambling company’s brands to “collaborate ... across multiple platforms, providing premium entertainment experiences for millions of players and fans across the United States”.