Nasdaq:LTRY
Lottery.com Announces Strong Third Quarter Results and Year-to-Date Revenue Increase of $42.8 Million Over Prior-Year Period
Third quarter 2021 revenue of $32.2 million and net income of $11.2 million
Strong growth in user transaction profitability
AUSTIN, Texas, Nov. 15, 2021 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company that is transforming how, where and when lottery is played, reported financial results for the third quarter ended September 30, 2021. These results were achieved prior to the closing of the Company’s business combination with Trident Acquisitions Corp. on October 29, 2021. The Company’s unaudited financial statements for the third quarter of 2021 and other information have been filed in a Current Report on Form 8-K/A today with the U.S. Securities and Exchange Commission (“SEC”).
Tony DiMatteo, Lottery.com Co-Founder and CEO, commented, “We are proud of the strong revenue and profitability growth we achieved in the third quarter. While we were working toward the completion of our business combination, we acted decisively to advance our plans for our global affiliate program and monetize one of our assets by leveraging a B2B partner relationship. The start of this program provided increased revenue in the third quarter and is an essential building block of our B2B2C strategy, which we expect will lead to an increased user base and additional revenue from those end users going forward. Additionally, the implementation of a dynamic pricing model and improvements to our app, such as push notifications, contributed to strong growth in gross profit per transaction compared to the prior year period.”
Mr. DiMatteo continued, “Now that we have successfully completed our business combination, we are focused on utilizing the proceeds we realized from the transaction, along with our third quarter profits, to accelerate our targeted user marketing campaigns, enter new markets, expand our product offerings, and execute strategic and synergistic acquisitions. With our low customer acquisition costs, large addressable markets and leading brands, we look forward to realizing the profitable growth opportunities before us.”
Third Quarter 2021 Results
| Q3 2021 Financial Highlights | Three Months Ended | ||||||||||||
| September 30, | |||||||||||||
| 2021 | 2020 | Change | |||||||||||
| (in millions, except percentages; unaudited) | |||||||||||||
| Revenues | $ | 32.2 | $ | 1.6 | $ | 30.6 | |||||||
| Gross Profit | $ | 20.3 | $ | 0.9 | $ | 19.4 | |||||||
| Gross Margin | 63.0 | % | 54.9 | % | 8.1 | % | |||||||
| Net Income | $ | 11.2 | $ | (1.2 | ) | $ | 12.3 | ||||||
| Q3 2021 User Metrics (1) | |
Three Months Ended | |||||||||||
| September 30, | |||||||||||||
| 2021 | 2020 | Change | |||||||||||
| Transactions per user | 12.4 | 11.2 | 1.2 | ||||||||||
| Tickets per transaction | 3.8 | 3.5 | 0.3 | ||||||||||
| Revenue per transaction | $ | 9.52 | $ | 8.20 | $ | 1.32 | |||||||
| Gross profit per transaction | $ | 1.69 | $ | 0.93 | $ | 0.76 | |||||||
| Gross margin per transaction | 17.8 | % | 11.3 | % | 6.4 | % | |||||||
| (1) Excludes B2B users who made purchases through an affiliate or API partner | |||||||||||||
Third quarter 2021 revenue was $32.2 million, an increase of $30.6 million from the third quarter of 2020. The growth was driven by the global affiliate marketing program.
Third quarter 2021 gross profit was $20.3 million, an increase of $19.4 million from the third quarter of 2020. The increase was driven by the global affiliate marketing program as well as improved user profitability.
Third quarter 2021 gross profit per transaction was $1.69, or a $0.76 increase from the third quarter of 2020. The increase was driven by the implementation of a dynamic pricing model and improvements made to the Company’s platform, including push notifications, which contributed to higher tickets sold per transaction and higher revenue per transaction.
Third quarter 2021 net income was $11.2 million, compared to a net loss of $1.2 million in the third quarter of 2020. The improvement was driven by the increase in gross profit partially offset by expenses associated with the business combination.
Outlook and Update Following Business Combination
The Company expects to meet or exceed its previous guidance of $71 million for full year 2021 revenue.
On October 29, 2021, the Company successfully completed its business combination with Trident Acquisitions Corp. As a result of the transaction, Lottery.com received $42.8 million in net proceeds and converted $60 million of debt and accrued interest into equity. Following the completion of the business combination, the Company’s top strategic priorities include:
- Continuing development of Project Nexus’ blockchain-based gaming platform and launch of its first proprietary lottery game in 2022;
- Initiating new targeted marketing campaigns to broaden its B2C user base;
- Entering new markets in both the U.S. and internationally by the end of 2021 and entering New York and New Jersey in 2022;
- Developing and continually introducing new products to the Lottery.com platform, including additional state-specific games and digital scratcher games;
- Adding new affiliates and API partners to the Company’s B2B segment; and
- Executing on strategic and synergistic acquisitions, including those that will drive the Sports.com platform.
About Lottery.com
Lottery.com is a leading technology company that is transforming how, where and when lottery is played. Its engaging mobile and online platforms enable players and commercial partners located in the United States and internationally to remotely purchase legally sanctioned lottery games. Fans and subscribers look to Lottery.com for compelling, real-time results on more than 800 lottery games from more than 40 countries. Additionally, through WinTogether.org, Lottery.com is fundamentally changing how non-profit donors are incentivized to action by gamifying charitable giving. In all that it does, Lottery.com’s mission remains the same: an uncompromising passion to innovate, grow a new demographic of enthusiasts, deliver responsible and trusted solutions, and promote community and philanthropic initiatives. For more information, visit http://www.lottery.com.
Important Notice Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of present or historical fact included in this press release, regarding the company’s future financial performance, as well as the company’s strategy, future operations, revenue guidance, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Lottery.com disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Lottery.com cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Lottery.com. In addition, Lottery.com cautions you that the forward-looking statements contained in this press release are subject to the following factors: (i) the outcome of any legal proceedings that may be instituted against Lottery.com; (ii) Lottery.com’s ability to maintain effective internal controls over financial reporting, including the remediation of identified material weaknesses in internal control over financial reporting relating to segregation of duties with respect to, and access controls to, its financial record keeping system, and Lottery.com’s accounting staffing levels; (iii) the effects of competition on Lottery.com’s future business; (iv) risks related to Lottery.com’s dependence on its intellectual property and the risk that Lottery.com’s technology could have undetected defects or errors; (v) changes in applicable laws or regulations; (vi) risks related to the COVID-19 pandemic and its effect directly on Lottery.com and the economy generally; (vii) risks relating to privacy and data protection laws, privacy or data breaches, or the loss of data; (viii) the possibility that Lottery.com may be adversely affected by other economic, business, and/or competitive factors; (ix) the ability of Lottery.com to achieve its strategic and growth objectives as stated or at all; and (x) those factors discussed in the proxy statement/prospectus filed by Lottery.com with the SEC under the heading “Risk Factors” and the other documents filed, or to be filed, by Lottery.com with the SEC. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that Lottery.com has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov.
AutoLotto, Inc.
Condensed Consolidated Balance Sheets
| As of September 30, | As of December 31, | |||||||
| 2021 | 2020 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash | $ | 1,179,467 | $ | 3,825,511 | ||||
| Restricted cash | – | 6,950,000 | ||||||
| Accounts receivable | 33,072,278 | 26,195 | ||||||
| Prepaid expenses | 10,815,458 | 22,013,110 | ||||||
| Other current assets | 238,627 | 788,033 | ||||||
| Total current assets | 45,305,830 | 33,602,849 | ||||||
| Investments | 250,000 | 250,000 | ||||||
| Goodwill | 17,937,691 | 12,997,048 | ||||||
| Intangible assets, net | 27,820,753 | 3,211,250 | ||||||
| Property and equipment, net | 1,297,885 | 670,952 | ||||||
| Total assets | $ | 92,612,159 | $ | 50,732,099 | ||||
| Liabilities | ||||||||
| Trade payables | $ | 2,986,762 | $ | 2,176,621 | ||||
| Deferred revenue | 598,214 | 7,763,593 | ||||||
| Convertible debt, net – current | 8,912,163 | 8,882,665 | ||||||
| Notes payable – current | 4,077,982 | 12,207,180 | ||||||
| Accrued interest | 3,435,111 | 721,717 | ||||||
| Accrued and other expenses | 4,992,522 | 2,335,350 | ||||||
| Total current liabilities | 25,002,754 | 34,087,126 | ||||||
| Convertible debt, net – non current | 31,569,218 | 10,000 | ||||||
| Other long term liabilities | 1,600,000 | – | ||||||
| Total liabilities | 58,171,972 | 34,097,126 | ||||||
| Stockholders’ Equity | ||||||||
| Controlling Interest | ||||||||
| Common stock | 5,912 | 5,159 | ||||||
| Par value $.001, 8,610,000 shares authorized, 5,910,980 and 5,158,607 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
| Preferred stock – series seed | 63 | 63 | ||||||
| Par value $.0001, 633,000 shares authorized, 633,000 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
| Preferred stock – series A | 122 | 122 | ||||||
| Par value $.0001, 1,220,000 shares authorized, 1,220,000 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
| Preferred stock – series A1 | 22 | 22 | ||||||
| Par value $.0001, 225,000 shares authorized, 223,749 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
| Preferred stock – series A2 | 30 | 30 | ||||||
| Par value $.0001, 305,000 shares authorized, 302,668 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
| Additional paid-in capital | 123,368,737 | 111,770,147 | ||||||
| Accumulated deficit | (91,577,868 | ) | (95,140,570 | ) | ||||
| Total AutoLotto Inc. stockholder’s equity | 31,797,018 | 16,634,973 | ||||||
| Noncontrolling Interest | 2,643,169 | – | ||||||
| Total Stockholders’ Equity | 34,440,187 | 16,634,973 | ||||||
| Total Liabilities & Stockholders’ Equity | $ | 92,612,159 | $ | 50,732,099 | ||||
AutoLotto, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended September 30, 2021 and 2020 and Nine Months Ended
September 30, 2021 and 2020
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenue | $ | 32,248,036 | $ | 1,602,916 | $ | 47,035,327 | $ | 4,197,314 | ||||||||
| Cost of revenue | 11,920,721 | 722,363 | 15,925,072 | 1,770,885 | ||||||||||||
| Gross profit | 20,327,315 | 880,554 | 31,110,255 | 2,426,429 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Personnel costs | 1,614,063 | 974,139 | 4,138,240 | 2,975,464 | ||||||||||||
| Professional fees | 976,679 | 182,502 | 5,174,378 | 638,878 | ||||||||||||
| General and administration | 1,085,431 | 163,691 | 4,355,760 | 593,380 | ||||||||||||
| Depreciation and amortization | 1,530,026 | 355,671 | 2,904,000 | 1,065,490 | ||||||||||||
| Total operating expenses | 5,206,199 | 1,676,004 | 16,572,378 | 5,273,211 | ||||||||||||
| Income (loss) from operations | 15,121,116 | (795,450 | ) | 14,537,877 | (2,846,782 | ) | ||||||||||
| Other expenses | ||||||||||||||||
| Interest expense | 3,789,316 | 296,517 | 9,318,638 | 881,553 | ||||||||||||
| Other expense | 178,952 | 68,218 | 1,656,540 | 416,858 | ||||||||||||
| Total other expenses, net | 3,968,268 | 364,735 | 10,975,178 | 1,298,411 | ||||||||||||
| Net income (loss) | $ | 11,152,848 | $ | (1,160,185 | ) | $ | 3,562,699 | $ | (4,145,193 | ) | ||||||
| Net income (loss) per common share | ||||||||||||||||
| Basic | $ | 1.89 | $ | (0.22 | ) | $ | 0.64 | $ | (0.80 | ) | ||||||
| Diluted | $ | 0.24 | $ | (0.22 | ) | $ | 0.08 | $ | (0.80 | ) | ||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 5,900,980 | 5,158,607 | 5,534,794 | 5,158,607 | ||||||||||||
| Diluted | 45,956,427 | 5,158,607 | 45,590,241 | 5,158,607 | ||||||||||||
AutoLotto, Inc.
Condensed Consolidated Statements of Cash Flows
| Nine Months Ended September 30, |
||||||||
| 2021 | 2020 | |||||||
| (unaudited) | ||||||||
| Cash flow from operating activities | ||||||||
| Net income (loss) | $ | 3,562,698 | $ | (4,145,193 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 2,904,000 | 1,065,490 | ||||||
| Amortization of debt discount | 2,296,747 | 126,096 | ||||||
| Amortization of beneficial conversion feature | 4,191,530 | 494,639 | ||||||
| Stock based compensation expense | 6,479 | 13,872 | ||||||
| Forgiveness of PPP Loan | (493,225 | ) | – | |||||
| Loss on extinguishment of debt | 71,174 | – | ||||||
| Issuance of debt to pay expenses | 1,003,983 | – | ||||||
| Changes in assets & liabilities: | ||||||||
| Accounts receivable | (33,046,083 | ) | 1,625 | |||||
| Prepaid expenses | 11,202,143 | 103,253 | ||||||
| Other current assets | 561,321 | (23,975 | ) | |||||
| Trade payables | 808,670 | (391,352 | ) | |||||
| Deferred revenue | (7,165,379 | ) | 578,759 | |||||
| Accrued interest | 2,758,009 | 260,818 | ||||||
| Accrued and other expenses | 3,979,552 | 399,445 | ||||||
| Net cash used in operating activities | (7,358,379 | ) | (1,516,522 | ) | ||||
| Cash flow from investing activities | ||||||||
| Purchases of property and equipment | (1,097,993 | ) | (21,915 | ) | ||||
| Purchases of intangible assets | (3,000,000 | ) | – | |||||
| Cash paid for acquisitions, net of cash acquired | (10,012,540 | ) | – | |||||
| Net cash used in investing activities | (14,110,533 | ) | (21,915 | ) | ||||
| Cash flow from financing activities | ||||||||
| Issuance of digital securities | 108,332 | 487,494 | ||||||
| Proceeds from exercise of options | 47,130 | – | ||||||
| Proceeds from issuance of convertible debt | 13,483,500 | 365,000 | ||||||
| Proceeds from government loan | – | 643,125 | ||||||
| Proceeds from issuance of notes payable | – | 27,699 | ||||||
| Principal payments on notes payable | (1,766,093 | ) | (44,148 | ) | ||||
| Net cash provided by financing activities | 11,872,869 | 1,479,170 | ||||||
| Net change in net cash and restricted cash | (9,596,044 | ) | (59,266 | ) | ||||
| Cash at beginning of period | 10,775,511 | 158,492 | ||||||
| Cash at end of period | $ | 1,179,467 | $ | 99,226 | ||||
| SUPPLEMENTAL DISCLOSURES: | ||||||||
| Interest paid in cash | $ | 40,916 | $ | – | ||||
| Non cash investing and financing activities | ||||||||
| Conversion of convertible debt into common stock | $ | 935,000 | $ | – | ||||
| Capitalization of interest from loan extinguishment | $ | 44,614 | – | |||||
| Purchase of intangible assets through the issuance of convertible debt | $ | 15,450,000 | $ | – | ||||
| Issuance of convertible debt in exchange for outstanding liabilities | $ | 2,108,983 | $ | – | ||||
| Issuance of convertible debt in exchange for notes payable | $ | 4,531,250 | ||||||
| Common stock issued as part of acquisition | $ | 459,691 | $ | – | ||||
Lottery.com Contact:
Matthew Schlarb
VP, Investor Relations
(512) 585-7789
[email protected]
Ilott, Foster, and Murray Fly the Flag for Global Brands Across IndyCar and Indy NXT
DETROIT, May 30, 2025 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW)(“the Company” or “Lottery.com”) and Sports.com, the next-generation sports media platform, are proud to announce their continued sponsorship of three exceptionally talented drivers — Callum Ilott, Louis Foster and Sebastian Murray — as they take to the streets of Detroit this weekend in both the NTT INDYCAR SERIES and INDY NXT by Firestone.
Lottery.com branded helmet worn by Callum Ilott
Callum Ilott: Lottery.com Helmet Deal Extended Through 2025
Following his standout showing at the Indianapolis 500, Callum Ilott will now wear the Lottery.com logo front and center on his custom helmet for the remainder of the 2025 season. Driving car number 90 for the Prema racing team, Ilott represents Lottery.com’s lead entry in the top-tier INDYCAR SERIES.
“We’re proud to extend our relationship with Callum,” said Matthew McGahan, Chairman and CEO of Lottery.com and Sports.com. “I had the pleasure of spending time with Callum at the Indy 500 following his great drive, and I was really impressed not only by his ability to drive the wheels off a car, but also by his commercial understanding of how important partnerships like this are for the future. We look forward to working with Callum through this year and beyond.”
Sports.com branded helmet worn by Louis Foster.
Louis Foster: Sports.com Partnership Continues Post-Indy 500
After finishing 12th and earning Top Rookie Honors at the Indy 500 last weekend, Louis Foster continues his strong run in the Rahal Letterman Lanigan Racing No. 45 car. The Sports.com branding will now appear on the chin of Foster’s car, showcasing the Company’s commitment to elite racing talent.
“Detroit’s a tricky track and there have been some eventful races there in recent years,” Foster commented. “The main goal is to qualify well and stay out of trouble to keep our momentum going.”
“It’s just, like, super bumpy,” he added. “It’s really short and narrow. For us to be on the limit and not end up in the wall, it just makes it very, very challenging. In some areas, it’s very narrow. In others, you have different tarmacs in different corners, which makes it hard to feel the grip of the car.”
“Not only did Louis deliver one of the outstanding drives of the Indy 500 weekend,” said Marc Bircham, Director of Sports.com, “but having spent time with him personally, I can say he’s got a fantastic personality — every sponsor’s dream. He has a great racing pedigree. He’s the complete package.”
Sebastian Murray: Rising Star Continues Indy NXT Journey
In the INDY NXT by Firestone championship, Sebastian Murray will once again carry Lottery.com branding on the rear spoiler and nose wing endplates of his Andretti Cape Motorsports machine. As the youngest driver in the group, Murray’s progression symbolizes the long-term vision for both Lottery.com and Sports.com in supporting emerging motorsport talent and driver development.
“Sebastian represents the future,” said Marc Bircham. “He’s calm under pressure and has the talent to rise quickly through the ranks. We’re excited to watch his journey unfold and to be a part of it.”
“Marc and I also had the pleasure of spending time with Sebastian over the Indy 500 weekend,” said Matthew McGahan, “and he’s not only a charming young man but an exceptional natural driver. There’s no doubt he’s one to watch.”
Detroit Street Circuit: The Challenge Ahead
Detroit’s circuit is one of the most demanding in motorsport, with tight corners, changing surfaces, and limited overtaking zones that test both driver skill and race strategy. This marks the fourth major event in May, closing out the busiest month of the INDYCAR calendar.
Broadcast Schedule (ET):
- Fri, May 30 – Practice 1: 3:00 PM (FS2, Sky Sports F1 UK)
- Sat, May 31 – Practice 2: 9:00 AM / Qualifying: 12:00 PM (FS1, Sky Sports)
- Sun, June 1 – Warm-Up: 9:30 AM / Race: 12:30 PM (FOX, Sky Sports F1 UK)
Triple Sponsorship, One Global Vision
This three-driver lineup exemplifies Lottery.com and Sports.com’s investment in world-class motorsport to raise global brand awareness and fan engagement. From helmet design to car decals, the brands are front and center on one of the most watched racing series in the world.
“This is more than sponsorship — it’s the start of a movement,” said Matthew McGahan. “We’re building long-term equity in the sports and entertainment verticals, and these partnerships are already delivering global brand recognition along with signaling to our shareholders that we are making strides to increase the value of our premium brand assets.”
About Lottery.com
The Lottery.com Inc. (NASDAQ: LTRY, LTRYW) family of brands — including Sports.com, Tinbu and WinTogether, comprise a unified ecosystem that integrates gaming, entertainment, and sports. Follow the Company on X, Instagram and Facebook.
For more information, please visit www.lottery.com or www.sports.com or contact our media relations team.
Important Notice Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company’s strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this Form 8-K, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to, any future findings from ongoing review of the Company’s internal accounting controls, additional examination of the preliminary conclusions of such review, the Company’s ability to secure additional capital resources, the Company’s ability to continue as a going concern, the Company’s ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq, the Company’s ability to regain compliance with the Bid Price Requirement, the Company’s ability to regain compliance with Nasdaq Listing Rules, the Company’s ability to become current with its SEC reports, and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K/A filed by the Company with the SEC on April 22, 2025, and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/19dde0b9-86b4-4956-802f-8f1ec3fe1ab0
https://www.globenewswire.com/NewsRoom/AttachmentNg/6f7ef34f-55a7-4558-9225-72e72363a259
This press release was published by a CLEAR® Verified individual.
CONTACT: For more information, please visit www.lottery.com or www.sports.com or contact our media relations team at [email protected].
Nasdaq:LTRY
Lottery.com Inc. Enters New Era as Turnaround Completes and Strategic Acquisitions Accelerate
Company Poised to Execute on Five-Year Growth Plan Across Lottery, Sports and Entertainment Verticals
FORT WORTH, Texas, May 28, 2025 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company in digital lottery, sports and entertainment, announces that its registration statement on Form S-1 has been declared effective by the U.S. Securities and Exchange Commission as of May 14, 2025. This milestone unlocks access to a previously announced $100 million financing facility (“Financing Facility”) with Generating Alpha Ltd., providing the Company with financial flexibility to execute its aggressive acquisition and growth strategy.
This announcement follows a week of extraordinary market performance, with over 275 million shares traded and the stock surging from $0.70 to a high of $2.64. The effectiveness of the S-1 marks the official close of a two-year corporate turnaround. Under new leadership, Lottery.com has rebuilt its foundation: restructuring the Board and executive team, remediating legacy compliance issues, and implementing two clear innovative business models for Lottery.com and Sports.com.
“The turnaround is now complete. We are structurally sound, operationally ready, and strategically funded to drive aggressive growth,” said Matthew McGahan, CEO and Chairman of Lottery.com. “We’ve stabilized the Company from its foundation, secured the capital need and are moving rapidly towards driving revenue and acquiring assets that strengthen our brand ecosystem and deliver profits for the Company and its shareholders.”
The Company’s focus now turns to strategic execution—transforming capital into revenue generation and high-value assets to deliver shareholder value.
While the Financing Facility provides capital through the issuance of common stock, the Company intends to deploy proceeds not for general dilution but to accelerate revenue growth and acquire accretive assets across gaming, content, media and live events—many of which are already in late-stage negotiations. Access to immediate funding allows Lottery.com to drive revenue and complete its target acquisitions, including but not limited to DotCom Ventures Inc., owner of Concerts.com and TicketStub.com, and Nook Holdings Limited (Dubai, UAE) to further develop the Sports.com brand in the Middle East. The buy-and-build acquisition strategy is designed to:
- Drive near-term revenue and sustainable long-term profitability
- Expand global brand awareness
- Enhance shareholder value
- Maximize synergies between Lottery.com and Sports.com
McGahan added: “The S-1 going effective is transformative for Lottery.com and its shareholders. We are not just raising capital—we are deploying it against cash-generative acquisitions that enhance our balance sheet, income statement and the valuation of our brands. This is a disciplined growth phase.”
The Company’s five-year vision includes expanding Lottery.com International, launching new sweepstakes products (domestically and abroad), deepening its affiliate program and building out a robust content and IP ecosystem under Sports.com Studios—all underpinned by the funding now available through the activated Generating Alpha Financing Facility, along with continued funding from United Capital Investments Ltd.
About Lottery.com
The Lottery.com Inc. (NASDAQ: LTRY, LTRYW) family of brands — including Sports.com, Tinbu, and WinTogether, is a unified ecosystem that integrates gaming, entertainment, and sports.
Important Notice Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company’s strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this Form 8-K, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to, any future findings from ongoing review of the Company’s internal accounting controls, additional examination of the preliminary conclusions of such review, the Company’s ability to secure additional capital resources, the Company’s ability to continue as a going concern, the Company’s ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq, the Company’s ability to regain compliance with the Bid Price Requirement, the Company’s ability to regain compliance with Nasdaq Listing Rules, the Company’s ability to become current with its SEC reports, and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K/A filed by the Company with the SEC on April 22, 2025, and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
This press release was published by a CLEAR® Verified individual.
CONTACT: For more information, please visit www.lottery.com or www.sports.com or contact our media relations team at [email protected].
INDIANAPOLIS, May 27, 2025 (GLOBE NEWSWIRE) — In the running of the 109th Indianapolis 500, Louis Foster delivered a headline-grabbing performance as Top Rookie finisher, proudly representing Sports.com and Lottery.com Inc. (Nasdaq: LTRY; LTRYW) (“Lottery.com” or “the Company”) in what marked a milestone weekend for the brands’ growing presence in global motorsport.
Callum Ilott (red) and Louis Foster (black) stand next to the Borg-Warner Trophy prior to the start of the 2025 Indy 500.
Driving the #45 Desnuda Honda for Rahal Letterman Lanigan Racing, Foster started 20th and charged into the top 10 on race day. Despite receiving two drive-through penalties for pit lane infractions, he kept his composure to bring the car home in a provisional 15th place, later elevated to P12 following post-race disqualifications of three competitors. Foster was the only rookie finisher out of four starters — a feat that underlines both his talent and maturity on the sport’s biggest stage.
“To be the top rookie in my first 500 is something I’m very proud of,” said Foster. “We had the pace to run inside the top 10, and I’m already focused on building from this heading into Detroit.”
Foster’s helmet paid tribute to key figures in his racing journey and prominently featured the Sports.com logo on the chin, signaling the brand’s deepening investment in next-generation talent.
Callum Ilott, representing PREMA Racing, delivered an equally impressive performance in the Italian team’s debut Indy 500. Running as high as fifth and ultimately finishing P12 on track, Ilott’s pace and professionalism drew strong praise. While PREMA’s #90 entry was later disqualified for a technical infringement relating to rear wing endplate height, the result did little to diminish the team’s sense of achievement in their first appearance at the Brickyard.
“It was an unforgettable experience,” said Matthew McGahan, CEO of Lottery.com and Sports.com. “I was honored to spend time with Callum, Louis, and Sebastian over the weekend — three exceptional young drivers who gave it their all. The race itself was spectacular. Having attended many Formula One events in my career, this was my first Indy 500. This event wasn’t just a race; it was a spectacle.”
“As a former professional athlete myself, this was my first time attending the Indianapolis 500 — and I can honestly say I’ve never experienced anything like it,” added Marc Bircham, Director of Sports.com. “From the roar of the crowd to the Black Hawk helicopters leading the opening laps, it was absolutely electric. It’s a bucket-list event that exceeded all expectations. Neither Matthew nor I have ever witnessed a live sporting event with nearly half a million fans over a single weekend. The scale, the energy, the precision — it was unforgettable. And to be there supporting Louis, Callum, and Sebastian made it all the more meaningful. These are the kind of world-class moments that define what Sports.com is all about.”
The weekend also offered the opportunity to connect with rising Indy NXT star Sebastian Murray, currently backed by Sports.com and Lottery.com. Murray joined the executives for a meet-and-greet during the event, reinforcing the Company’s commitment to supporting future champions across every tier of the sport.
Throughout the event, leadership from Lottery.com and Sports.com held multiple discussions with the management teams of both Foster and Ilott to explore deeper sponsorship agreements and expanded collaboration opportunities across future race weekends and series.
This announcement comes at a pivotal moment for Lottery.com, which last week recorded nearly half a billion shares traded. With momentum building, the Company continues to advance its visibility and impact across elite global sports platforms.
About Lottery.com Inc.
The Lottery.com Inc. (NASDAQ: LTRY, LTRYW) family of brands — including Sports.com, Tinbu and WinTogether, comprise a unified ecosystem that integrates gaming, entertainment, and sports. Follow the Company on X, Instagram and Facebook
Important Notice Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company’s strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this Form 8-K, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to, any future findings from ongoing review of the Company’s internal accounting controls, additional examination of the preliminary conclusions of such review, the Company’s ability to secure additional capital resources, the Company’s ability to continue as a going concern, the Company’s ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq, the Company’s ability to regain compliance with the Bid Price Requirement, the Company’s ability to regain compliance with Nasdaq Listing Rules, the Company’s ability to become current with its SEC reports, and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K/A filed by the Company with the SEC on April 22, 2025, and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/69ba93f1-857d-4719-91c3-404868fedf4a
This press release was published by a CLEAR® Verified individual.
CONTACT: For more information, please visit www.lottery.com or contact our media relations team at [email protected].
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