Nasdaq:LTRY
Lottery.com Announces Strong Fourth Quarter and Full Year Results
Fourth quarter 2021 revenue of $21.5 million, up $18.2 million versus prior-year period
Full year 2021 revenue of $68.5 million, an increase of $61.0 million versus 2020
Full year 2021 pro forma revenue of $70.5 million, including acquired interest in Mexican entities¹
Full year 2021 net loss of $9.3 million
Full year 2021 Adjusted EBITDA of $31.1 million¹
AUSTIN, Texas, March 31, 2022 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company that is transforming how, where and when the lottery is played, reported financial results for the fourth quarter and full year ended December 31, 2021. On October 29, 2021, the Company successfully completed its business combination with Trident Acquisitions Corp. (the “business combination”).
Tony DiMatteo, Lottery.com Co-Founder and CEO, commented, “In the fourth quarter and throughout 2021, we demonstrated our ability to execute our strategic growth initiatives across the business to generate strong revenue growth and gross profit. B2C sales increased compared to the prior year period, despite no digital marketing spending. LotteryLink, our affiliate program, expanded and generated multiple revenue streams. I am extremely proud of our team achieving these accomplishments while successfully closing the business combination and taking our Company public.”
Mr. DiMatteo continued, “We entered 2022 with positive momentum and continued focus on executing our strategic growth plan. Fueled by approximately $43 million of proceeds from our business combination and $30 million received from the sale of LotteryLink credits, we are investing in initiatives to drive growth. I am pleased with our execution in the first quarter and am excited about our prospects to scale and grow the business in 2022.”
(1) 2021 Pro Forma Revenue and Full Year 2021 Adjusted EBITDA are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definition of these non-GAAP financial measures and “Reconciliation of Non-GAAP Financial Measures” for a reconciliation to their most comparable GAAP measures.
Fourth Quarter 2021 Financial Highlights
| Q4 2021 Financial Highlights | Three Months Ended December 31, |
|||||||||||
| 2021 | 2020 | Change | ||||||||||
| (in millions) | ||||||||||||
| Revenues | $ | 21.5 | $ | 3.3 | $ | 18.2 | ||||||
| Gross profit | $ | 18.3 | $ | 2.1 | $ | 16.2 | ||||||
| Net loss | $ | (12.9 | ) | $ | (1.7 | ) | $ | (11.2 | ) | |||
| Cash | $ | 62.6 | $ | 3.8 | $ | 58.8 | ||||||
| Debt | $ | 3.8 | $ | 21.1 | $ | (17.3 | ) | |||||
Fourth quarter 2021 revenues were $21.5 million, an increase of $18.2 million, or 559%, from the fourth quarter of 2020. The growth was driven by the sale of LotteryLink credits to a LotteryLink affiliate, primarily to acquire prepaid lottery games from the Company in conjunction with the affiliate’s launch of a pilot promotional campaign at a national grocery chain. The Company also sold LotteryLink credits for marketing materials, product development and $3.0 million in prepaid advertising credits. B2C lottery ticket sales increased substantially from the prior year period, despite no digital marketing spend.
Fourth quarter 2021 gross profit was $18.3 million, an increase of $16.2 million from the fourth quarter of 2020. The increase was primarily driven by the sale of LotteryLink credits to a LotteryLink affiliate for prepaid lottery games from the Company, many of which expired without being redeemed due to the delayed launch of the affiliate’s promotional programs. As a result, the Company did not incur costs with respect to the sale of those credits.
Fourth quarter 2021 net loss was $12.9 million, driven by non-cash stock compensation expense of $15.5 million. The net loss also included $8.8 million of interest expense, which was driven by a non-recurring expense associated with conversion of debt to equity at the time of the business combination.
Cash as of December 31, 2021, was $62.6 million, which included $42.8 million in net proceeds from the business combination and $30.0 million received from the previously announced sale of LotteryLink credits in the third quarter of 2021.
Debt as of December 31, 2021, was $3.8 million following the conversion of $63.5 million of convertible debt into equity immediately prior to the business combination.
Full Year 2021 Financial Highlights
| 2021 Financial Highlights | Twelve Months Ended December 31, |
|||||||||||
| 2021 | 2020 | Change | ||||||||||
| (in millions) | ||||||||||||
| Revenues | $ | 68.5 | $ | 7.5 | $ | 61.0 | ||||||
| Pro forma revenues | $ | 70.5 | $ | 10.3 | $ | 60.2 | ||||||
| Gross profit | $ | 49.4 | $ | 4.5 | $ | 44.9 | ||||||
| Net loss | $ | (9.3 | ) | $ | (5.8 | ) | $ | (3.5 | ) | |||
| Adjusted EBITDA | $ | 31.1 | $ | (3.1 | ) | $ | 34.2 | |||||
Full year 2021 revenues were $68.5 million, an increase of $61.0 million, or 819%, from 2020. The growth was driven primarily by the sale of $47.1 million of LotteryLink credits for prepaid advertising, prepaid lottery games, marketing materials and product development. Increased B2C sales also contributed to revenue growth.
2021 pro forma revenues were $70.5 million and included the full year impact of Global Gaming Enterprises, Inc. (“Global Gaming”), which the Company acquired in June 2021. Global Gaming owns an 80% equity interest in each of two Mexican entities.
Full year 2021 gross profit was $49.4 million, an increase of $44.9 million from 2020. The increase was primarily driven by the profits generated by the sale of LotteryLink credits and higher data sales, which generate margins above the Company average.
Full year 2021 net loss was $9.3 million and was driven by strong gross profit, offset by $18.1 million of interest expense, which includes a non-recurring expense associated with the conversion of debt to equity at the time of the business combination, $15.5 million of non-cash stock compensation expense, and $4.1 million of operational expenses related to the business combination.
Full year 2021 Adjusted EBITDA was $31.1 million, an increase of $34.2 million compared to negative Adjusted EBITDA of $3.1 million in 2020. The increase was driven by strong growth in gross profit.
Update on Key Initiatives
- B2C User Growth
- Signed an agreement with T-Mobile to become its exclusive digital lottery brand advertising on T-Mobile platform in rideshare vehicles.
- Tested B2C ad campaigns on multiple digital outlets in the first quarter of 2022 and intend to use this data to launch broader marketing campaigns in the second quarter of 2022.
- LotteryLink and B2B
- LotteryLink affiliate launched a pilot program with a national grocery store chain, which is expected to expand in the second quarter of 2022.
- Added ICARO Media Group as an affiliate to promote Lottery.com B2C products in South America.
- Project Nexus
- Phase 1: Launch anticipated in early Q2 2022; expected to increase platform scalability, security, and the ability to implement product updates.
- Phase 2: Launch anticipated by the end of Q3 2022; expected to enable additional revenue generating features for existing products.
- Phase 3: Launch anticipated by the end of Q4 2022; expected to enable the support of a proprietary game that accepts payment in fiat or crypto currency, subject to regulatory and compliance requirements.
- New Markets
- Anticipate entry into five new domestic jurisdictions by the end of 2022.
Conference Call
This morning at 8:30 AM ET, the Company will host a conference call to discuss fourth quarter 2021 and full year 2021 results. A live webcast of the conference call will be available on the Investor Relations section of the Lottery.com website at https://ir.lottery.com. For those who cannot listen to the live webcast, a replay of the conference call will be available on the Lottery.com Investor Relations website.
To join by telephone, please dial 877-313-2495 or 929-517-0906 if calling from outside the U.S. The conference code is 5886747. Please dial in a minimum of 15 minutes prior to the start time to ensure a timely connection to the call. An operator will register your name and organization.
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 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, commercial partners and affiliates can utilize LotteryLink to provide Lottery.com products to their customers. 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.
Non-GAAP Financial Measures
This press release includes Pro Forma Revenue, EBITDA and Adjusted EBITDA, which are non-GAAP performance measures that we use to supplement our results presented in accordance with U.S. GAAP. We believe Pro Forma Revenue, EBITDA and Adjusted EBITDA are useful in evaluating our operating performance, similar to measures reported by our publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Pro Forma Revenue, EBITDA and Adjusted EBITDA are not intended to be substitutes for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
We define and calculate Pro Forma Revenue as revenue plus the impact on revenue as if the acquisition of Global Gaming by Lottery.com were consummated on January 1, 2020. We define and calculate EBITDA as net income or loss before the impact of interest income or expense, income tax expense or benefit, depreciation and amortization, and Adjusted EBITDA as EBITDA, as further adjusted for stock-based compensation and certain other non-recurring, non-cash or non-core items.
We include these non-GAAP financial measures because they are used by management to evaluate our core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. The financial statement tables that accompany this press release include a reconciliation of Pro Forma Revenue, EBITDA and Adjusted EBITDA to their most comparable U.S. GAAP financial measures.
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 Lottery.com’s strategy, future operations, 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) risks related to the timely implementation, launch or outcome of the Company’s technological development initiatives, including Project Nexus, as anticipated, or at all, and the risk that any of such technological development initiatives could have undetected defects or errors; (ii) the likelihood that the Company’s interest expense is maintained as the Company’s anticipates and the impact on the Company’s financial position in the event that it is not; (iii) the utility and impact of any information acquired by the Company during consumer testing as well as the risks of the data being applicable to a wider and more diverse consumer market; (iv) the ability of Lottery.com to achieve its strategic and growth objectives as stated or at all, including, without limitation, its ability to enter into new domestic jurisdictions or to cause LotteryLink to generate profitable growth and cost-effectively increase the Company’s user base and brand recognition; (v) the effects of competition on Lottery.com’s future business; (vi) Lottery.com’s ability to maintain effective internal controls over financial reporting, including, without limitation, 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; (vii) risks relating to cyber, privacy and data protection laws, cyber, privacy or data breaches, or the loss of data; (viii) the outcome of any legal proceedings that may be instituted against Lottery.com; (ix) changes in applicable laws or regulations; (x) risks related to the COVID-19 pandemic and its effect directly on Lottery.com and the economy generally; (xi) the possibility that Lottery.com may be adversely affected by other economic, business, and/or competitive factors; (xii) those factors discussed under the heading “Risk Factors” in the Form S-1 filed by Lottery.com with the SEC on November 18, 2021, 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.
| Lottery.com Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| Three Months Ended December 31, 2021 and 2020 and Twelve Months Ended | ||||||||||||||||
| December 31, 2021 and 2020 | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenue | $ | 21,492,067 | $ | 3,262,200 | $ | 68,527,394 | $ | 7,459,514 | ||||||||
| Cost of revenue | 3,233,635 | 1,181,530 | 19,158,707 | 2,952,415 | ||||||||||||
| Gross profit | 18,258,432 | 2,080,670 | 49,368,687 | 4,507,099 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Personnel costs | 17,447,294 | 1,502,491 | 21,585,534 | 4,477,955 | ||||||||||||
| Professional fees | 3,105,420 | 482,340 | 8,279,798 | 1,121,218 | ||||||||||||
| General and administrative | 664,735 | 491,404 | 5,020,495 | 1,084,784 | ||||||||||||
| Depreciation and amortization | 1,388,606 | 468,504 | 4,292,606 | 1,533,994 | ||||||||||||
| Total operating expenses | 22,606,055 | 2,944,740 | 39,178,433 | 8,217,951 | ||||||||||||
| Income (loss) from operations | (4,347,623 | ) | (864,070 | ) | 10,190,254 | (3,710,852 | ) | |||||||||
| Other expenses | ||||||||||||||||
| Interest expense | 8,814,314 | 340,375 | 18,132,952 | 1,221,928 | ||||||||||||
| Other expense | 1,250,978 | 462,225 | 2,907,518 | 879,083 | ||||||||||||
| Total other expenses, net | 10,065,292 | 802,600 | 21,040,470 | 2,101,011 | ||||||||||||
| Net loss before income tax | (14,412,915 | ) | (1,666,670 | ) | (10,850,216 | ) | (5,811,863 | ) | ||||||||
| Income tax expense (benefit) | (1,551,689 | ) | 800 | (1,551,689 | ) | 800 | ||||||||||
| Net loss | $ | (12,861,226 | ) | $ | (1,667,470 | ) | $ | (9,298,527 | ) | $ | (5,812,663 | ) | ||||
| Other comprehensive loss | ||||||||||||||||
| Cumulative translation adjusment, net | (655 | ) | – | (655 | ) | – | ||||||||||
| Total other comprehensive loss | $ | (12,861,881 | ) | $ | (1,667,470 | ) | $ | (9,299,182 | ) | $ | (5,812,663 | ) | ||||
| Net income (loss) per common share | ||||||||||||||||
| Basic and diluted | $ | (0.39 | ) | $ | (0.07 | ) | $ | (0.36 | ) | $ | (0.26 | ) | ||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic and diluted | 33,202,310 | 22,658,006 | 25,998,831 | 22,658,006 | ||||||||||||
| Lottery.com Inc | ||||||||
| Condensed Consolidated Balance Sheet | ||||||||
| Unaudited | ||||||||
| As of December 31, | As of December 31, |
|||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash | $ | 62,638,970 | $ | 3,825,511 | ||||
| Restricted cash | – | 6,950,000 | ||||||
| Accounts receivable | 21,696,653 | 26,195 | ||||||
| Prepaid expenses | 13,896,638 | 22,013,110 | ||||||
| Other current assets | 226,200 | 788,033 | ||||||
| Total current assets | 98,458,461 | 33,602,849 | ||||||
| Investments | 250,000 | 250,000 | ||||||
| Goodwill | 19,590,758 | 12,997,048 | ||||||
| Intangible assets, net | 28,710,980 | 3,211,250 | ||||||
| Property and equipment, net | 141,279 | 670,952 | ||||||
| Total assets | $ | 147,151,478 | $ | 50,732,099 | ||||
| Liabilities | ||||||||
| Trade payables | $ | 1,006,535 | $ | 2,176,621 | ||||
| Deferred revenue | 662,335 | 7,763,593 | ||||||
| Convertible debt, net – current | – | 8,882,665 | ||||||
| Notes payable – current | 3,771,340 | 12,207,180 | ||||||
| Accrued interest | 176,260 | 721,717 | ||||||
| Accrued and other expenses | 4,528,815 | 2,335,350 | ||||||
| Total current liabilities | 10,145,285 | 34,087,126 | ||||||
| Convertible debt, net – non current | – | 10,000 | ||||||
| Other long term liabilities | 1,169 | – | ||||||
| Total liabilities | 10,146,454 | 34,097,126 | ||||||
| Equity | ||||||||
| Controlling Interest | ||||||||
| Preferred Stock par value $0.001, 1,000,000 shares authorized, | ||||||||
| none issued and outstanding | – | – | ||||||
| Common stock par value $.001, 500,000,000 shares authorized, | 22,658 | |||||||
| 46,808,251 and 22,658,006 issued and outstanding as of December | ||||||||
| 31, 2021 and December 31, 2020 respectively | 46,808 | 22,658 | ||||||
| Additional paid-in capital | 238,754,797 | 111,752,883 | ||||||
| Accumulated other comprehensive (loss) | (655 | ) | – | |||||
| Accumulated deficit | (104,439,095 | ) | (95,140,568 | ) | ||||
| Total Lottery.com Inc. stockholder’s equity | 134,361,855 | 16,634,973 | ||||||
| Noncontrolling Interest | 2,643,169 | – | ||||||
| Total Equity | 137,005,024 | 16,634,973 | ||||||
| Total Liabilities & Equity | $ | 147,151,478 | $ | 50,732,099 | ||||
| Lottery.com Inc. | ||||||||
| Condensed Consolidated Statement of Cash Flows | ||||||||
| (unaudited) | ||||||||
| Year Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Cash flow from operating activities | ||||||||
| Net income (loss) | $ | (9,298,527 | ) | $ | (5,812,663 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 4,292,606 | 1,533,994 | ||||||
| Amortization of debt discount and beneficial conversion feature | 8,474,858 | 827,647 | ||||||
| Stock based compensation expense | 15,532,263 | 16,099 | ||||||
| Forgiveness of PPP Loan | (493,125 | ) | – | |||||
| Loss on extinguishment of debt | 71,174 | – | ||||||
| Issuance of debt to pay expenses | 2,732,167 | – | ||||||
| Non cash deSPAC expense | 5,460,452 | – | ||||||
| Income tax valuation allowance | (1,653,067 | ) | ||||||
| Changes in assets & liabilities: | ||||||||
| Accounts receivable | (21,636,324 | ) | – | |||||
| Prepaid expenses | 8,121,496 | 295,772 | ||||||
| Other current assets | 827,625 | (38,167 | ) | |||||
| Trade payables | (1,171,557 | ) | (341,251 | ) | ||||
| Deferred revenue | (7,101,258 | ) | 7,647,305 | |||||
| Accrued interest | (545,456 | ) | 394,282 | |||||
| Accrued and other expenses | 3,277,745 | 174,023 | ||||||
| Other long term liabilities | 1,169 | – | ||||||
| Net cash provided by operating activities | 6,892,239 | 4,697,041 | ||||||
| Cash flow from investing activities | ||||||||
| Purchases of property and equipment | (28,170 | ) | (21,915 | ) | ||||
| Purchases of intangible assets | (5,192,050 | ) | – | |||||
| Investment in subsidiary | (10,012,540 | ) | – | |||||
| Net cash used in investing activities | (15,232,760 | ) | (21,915 | ) | ||||
| Cash flow from financing activities | ||||||||
| Issuance of digital securities | 108,332 | 649,992 | ||||||
| Proceeds from exercise of options and warrants | 371,726 | – | ||||||
| Proceeds from issuance of convertible debt | 23,483,500 | 5,271,363 | ||||||
| Proceeds from the issuance of notes payable | 5,000,000 | 910,825 | ||||||
| Proceeds from despac | 44,614 | – | ||||||
| Extinguishment of debt | 42,794,176 | – | ||||||
| Principal payments on debt | (11,597,713 | ) | (890,287 | ) | ||||
| Net cash provided by financing activities | 60,204,635 | 5,941,893 | ||||||
| Effect of exchange rate changes on cash | (655 | ) | – | |||||
| Net change in net cash and restricted cash | 51,863,460 | 10,617,020 | ||||||
| Cash and restricted cash at beginning of period | 10,775,511 | 158,492 | ||||||
| Cash and restricted cash at end of period | $ | 62,638,971 | $ | 10,775,511 | ||||
| SUPPLEMENTAL DISCLOSURES: | ||||||||
| Interest paid in cash | $ | 4,438,623 | $ | – | ||||
| Non cash investing and financing activities | ||||||||
| Conversion of convertible debt into common stock | $ | 63,484,240 | $ | – | ||||
| 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 | $ | – | ||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||
| Lottery.com Inc. |
||||||||||||
| Reconciliation of Revenues to Pro Forma Revenues |
||||||||||||
| Twelve Months Ended | ||||||||||||
| December 31, | ||||||||||||
| 2021 | 2020 | Change | ||||||||||
| (in millions) | ||||||||||||
| Revenues | $ | 68.5 | $ | 7.5 | $ | 61.0 | ||||||
| Global Gaming pre-acquisition revenue(1) | 2.0 | 2.9 | $ | (0.9 | ) | |||||||
| Pro forma revenues (non-GAAP) | $ | 70.5 | $ | 10.3 | $ | 60.2 | ||||||
| (1) Giving effect to the acquisition of Global Gaming, which Lottery.com acquired in June 2021, as if it were consummated on January 1, 2020 | ||||||||||||
| Lottery.com Inc. |
||||||||||||
| Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA | ||||||||||||
| Twelve Months Ended | ||||||||||||
| December 31, | ||||||||||||
| 2021 | 2020 | Change | ||||||||||
| (in millions) | ||||||||||||
| Net income (loss) | $ | (9.3 | ) | $ | (5.8 | ) | $ | (3.5 | ) | |||
| Interest expense | 18.1 | 1.2 | 16.9 | |||||||||
| Income tax expense (benefit) | (1.6 | ) | 0.0 | (1.6 | ) | |||||||
| Depreciation and amortization expenses | 4.3 | 1.5 | 2.8 | |||||||||
| EBITDA (non-GAAP) | 11.5 | (3.1 | ) | 14.6 | ||||||||
| Operating expenses related to business combination | 4.1 | – | 4.1 | |||||||||
| Non-cash stock compensation expense | 15.5 | – | 15.5 | |||||||||
| Adjusted EBITDA (non-GAAP) | $ | 31.1 | $ | (3.1 | ) | $ | 34.2 | |||||
Lottery.com Contact:
Matthew Schlarb
VP, Investor Relations
(512) 585-7789
[email protected]
or
Jody Burfening/Harriet Fried
LHA Investor Relations
(212) 838-3777
[email protected]
Sebastian Murray Makes INDY NXT Grand Prix Doubleheader Debut
INDIANAPOLIS, May 08, 2025 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) announces that Scottish driver Sebastian Murray is set to make his Indianapolis Grand Prix race debut this weekend, piloting the No. 2 Dream Racing Dubai Dallara for Andretti Cape in Rounds 3 and 4 of the 2025 INDY NXT by Firestone championship at the Indianapolis Motor Speedway. As part of his full-season partnership, Lottery.com and Sports.com will continue their bold branding campaign across the car and driver apparel.
Meet the Driver:
- Seb Murray is a rising Scottish driver representing Andretti Cape in INDY NXT by Firestone.
- His first experience in an INDY NXT car was at the Chris Griffis Memorial Test in Fall 2024, where he finished Sessions 3 and 4 just outside of the top 10.
- This weekend marks his first official Grand Prix race weekend at the world-famous speedway.
Indianapolis Grand Prix – Weekend Format (Rounds 3 & 4 of 14):
- Track Type: Road Course
- Track Length: 2.439 miles
- Turns: 14
- Laps: 35 laps per race
- Race Day: Saturday, May 10 (Doubleheader)
- Watch Live: www.indycarlive.com
Murray’s Andretti Cape entry will continue to feature Lottery.com on the rear wing and Sports.com on the nose cone, along with branded overalls. The car’s striking red-and-black appearance made an impression at Barber Motorsports Park and returns to the grid this weekend.
“I’m really excited to be racing at Indianapolis this weekend,” said Sebastian Murray. “This is one of the most iconic circuits in the world, and to be driving for Andretti Cape here with the support of Lottery.com and Sports.com is a huge moment for me. Barber gave us a lot to build on, and I’m aiming to come out strong across both races. It’s a big stage, and I’m ready to take another step forward.”
“We’re looking forward to seeing Sebastian return to the track at Indy — the heart of American motorsport,” said Marc Bircham, Sports.com Director and Head of Sporting Acquisitions. “He showed exceptional control and pace at Barber. Indianapolis will be the perfect proving ground for his continued rise this season.”
“We’re all excited to see Sebastian race at the mighty Indianapolis,” said Matthew McGahan, Chairman and CEO of Lottery.com. “Off the back of an extraordinary weekend for Lottery.com and Sports.com at the Miami Grand Prix, and our announcements of the acquisitions of Concerts.com and TicketStub.com, this is a great way to finish the week. The entire Lottery.com and Sports.com team is behind Seb Murray and we’re wishing him a successful debut weekend at the illustrious Indianapolis Motor Speedway.”
About Lottery.com Inc.
The Lottery.com Inc. (NASDAQ: LTRY, LTRYW) family of brands — including Sports.com, Concerts.com, and TicketStub.com, comprise a unified ecosystem that integrates gaming, entertainment, and sports. Follow the Company on X, Instagram and Facebook.
About Sebastian Murray
Scottish driver Seb Murray drives for Andretti Cape for the 2025 INDY NXT by Firestone season as a rookie. The 17-year-old began his racing career in karting, where he competed in the IAME Series UAE from 2017-2023 and the IAME Euro Series from 2021-2022. Murray made his car racing debut in 2022 at the Abu Dhabi Grand Prix Formula 4 UAE Trophy Round, where he earned two top-10 finishes. In 2023, he raced the full F4 UAE Trophy round with a best finish of 13th and in 2024 scored a top-five finish. He continued to the GB3 Championship where he scored a best finish of seventh in 24 starts. Follow Murray on Instagram and TikTok.
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/4041e1ac-975c-4a77-8860-0b1025daabff
https://www.globenewswire.com/NewsRoom/AttachmentNg/724aabd4-2a8b-4de7-ae2d-600625e48439
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].
Nasdaq:LTRY
Lottery.com Expands Its Global Footprint in Live Entertainment with $10M Acquisition of Concerts.com and TicketStub.com
The Future of Ticketing, Streaming, and Events — Live Now and Ready to Scale
FORT WORTH, Texas, May 07, 2025 (GLOBE NEWSWIRE) — Lottery.com Inc. (NASDAQ: LTRY, LTRYW), a leading technology company transforming the intersection of gaming, sports, and entertainment, today announced that it has signed a Letter of Intent (“LOI”) to acquire a majority stake in DotCom Ventures Inc., a Nevada corporation (“DVI”), together with the premium domain assets Concerts.com and TicketStub.com, in a transaction valued at $10 million.
This strategic investment will form the third foundational pillar of Lottery.com’s expanding platform — standing alongside Sports.com and Lottery.com as part of a vertically integrated, multi-channel entertainment business. Together, these brands will create the concrete base of a next-generation ecosystem designed to unify content, commerce, and live experiences under a single global strategy. Concerts.com and TicketStub.com are live, operational, and built for scale — delivering real value and revenue potential from day one. The platforms feature:
- Verified ticket inventory only — no speculative listings
- Transparent, fan-first pricing with no hidden fees
- Event inventory consisting of sports, concerts, comedy, esports, and festivals
Acquisition Key Highlights
- $10M investment includes Concerts.com, TicketStub.com, and 51% of DVI
- Live and operational platforms already serving real ticket demand
- Best-in-class access to verified, non-speculative secondary ticket inventory
- No hidden fees and highly competitive pricing model
- Direct integration with Sports.com’s live streaming infrastructure
- Dual-brand strategy: Concerts.com (premium events) + TicketStub.com (broad fan utility)
- Positioned to be the go-to destination for live event discovery and commerce
- Revenue-ready infrastructure supporting rapid monetization
- Original content to be created by Sports.com Studios for both platforms
Matthew McGahan, CEO of Lottery.com and Sports.com said,
“While Concerts.com and Sports.com are hallmark media brands, we intend to make TicketStub.com the trusted ticketing site for fans of all live entertainment. Concerts.com is the perfect third vertical for our business. It will become the ticketing engine for Sports.com — giving us a unified commerce and content strategy around everything from sports to festivals to immersive experiences.”
Strategic $10 Million Investment Demonstrates Long-Term Vision
Acquiring a majority stake in DVI represents a $10 million transaction, comprised of a strategic blend of cash, secured debt, and equity issued at up to $3.00 per share — further validating the strength of the Lottery.com and Sports.com platform.
“Deals like this, which include stock at $3 per share, reinforce the belief in the value we’re building with Lottery.com, Sports.com and now, Concerts.com,” McGahan added. “This isn’t just an acquisition; it’s a commitment to a five-year vision, and a statement to the market that we are serious about scaling globally with premium digital assets.”
A Long-Term Partnership with a Shared Vision
“Our vision of providing fans with the information and access they need to discover the live events they want can now be realized on a global scale through Concerts.com and Sports.com,” said Patrick Ogle, CEO and founder of DVI. “DVI looked at several other partners over the last year. Ultimately, we knew that these assets belong together, and fans deserve reliable access to a live entertainment platform they can trust. With the backing of Lottery.com and the infrastructure behind Sports.com, we’re building more than a platform — we’re creating a new standard for how fans connect to live experiences.”
Ogle is an entrepreneurial lawyer and digital strategist with more than two decades of experience spanning media, entertainment, and athlete representation. From his early days as an intern at Jerry Bruckheimer Films and Television and Network Music Group, to 20+ years managing the business and legal affairs of athletes and entertainers, Ogle has built a career at the intersection of entertainment and infrastructure. He is a former 15-year member of The Recording Academy, and an active voting member of the Country Music Association.
“Patrick brings more than just the domain — he brings a deep understanding of what this vision can become,” said Gregory Potts, Chief Operating Officer of Lottery.com. “Entering into this LOI is a clear vote of confidence — not just in the value of the brands, but in our collective ability to execute together over the next five years. This is an exciting culmination of a relationship that began in 2023, appropriately, at the Pilgrimage Music Festival in Franklin, TN.”
The final transaction will include the assumption of secured notes and a multi-stage stock issuance structure, reflecting alignment and long-term commitment from all parties.
Powering the Future of Live Entertainment
Concerts.com is being designed not simply as a ticketing platform, but as a fully integrated live events engine. It will serve as the primary processor of access and fan engagement, tying directly into Sports.com’s fast-growing live streaming infrastructure.
The investment in DVI will include TicketStub.com, which will operate in parallel as a brand focused on alternative entertainment verticals, including festivals, comedy, esports, and niche lifestyle events. This dual-brand strategy allows for both mainstream and genre-specific ticketing models under the broader Concerts.com umbrella.
As part of the short and mid-term roadmap:
- The brand will integrate with live streaming functionality and real-time access models across all Lottery.com and Sports.com verticals
- Sports.com’s ambassador network will amplify events across social platforms
- Concerts.com will power bundled experiences combining tickets + content + streaming
- Deliver to consumers crossover activations between sports, music, charitable gaming and culture
- Sports.com Studios will create proprietary content for Concerts.com
Domain Portfolio Strength
With the addition of Concerts.com and TicketStub.com, Lottery.com will hold what it believes to be one of the strongest domain portfolios in the world. With Lottery.com, Sports.com, and now Concerts.com, the company stands alone in its control of three world-class, category-defining digital assets.
“Very few — if any — companies can claim three domains of this caliber,” said McGahan. “And we believe the combination of Lottery.com, Sports.com, and Concerts.com is without peer in the global digital entertainment space. These assets will anchor the next decade of innovation across content, commerce, and live experiences.”
McGahan went on to say that with the addition of these assets, he believes Lottery.com is arguably one of the most exciting investment opportunities on the exchange today.
“This is a unique opportunity to invest in a company with premium global assets and a bold vision for the future of entertainment, gaming and live events.”
About Lottery.com
The Lottery.com Inc. (NASDAQ: LTRY, LTRYW) family of brands — including Sports.com, Concerts.com, and TicketStub.com, 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 contact our media relations team at [email protected].
Nasdaq:LTRY
Sebastian Murray Makes Second INDY NXT by Firestone Start Driving No. 2 Car Sponsored by Lottery.com and Sports.com
Strong Qualifying for Andretti Cape Driver & Red-and-Black Branding Turn Heads
BIRMINGHAM, Ala., May 05, 2025 (GLOBE NEWSWIRE) — Rising open-wheel talent Sebastian Murray made his second INDY NXT by Firestone start this weekend at the Grand Prix of Alabama, driving the No. 2 Dream Racing Dubai Dallara for Andretti Cape, backed by Lottery.com Inc. (Nasdaq: LTRY, LTRYW) and Sports.com.
Key Highlights:
- Qualified P10 – Murray’s best qualifying result of the season so far
- Climbed to P8 during the race before an incident forced a drop in pace
- Finished P16, now P17 in the championship standings (27 points)
- Next stop: Double-header at Indianapolis Motor Speedway – May 9 & 10
Murray impressed in qualifying, starting P10 on the grid at the technically demanding Barber Motorsports Park. He was running inside the top ten and pushing toward the front until a snap in the rear of the car forced him off-track in Turn 8, damaging his tires and limiting his pace over the final 26 laps.
“Our race pace was really good up until we were involved in an incident,” said Murray. “We were sitting in P8, and it was going well — we were going to collect some solid points.”
“It’s unfortunate, but I think there are a lot of positives to take from the weekend,” he added. “The team has done a great job, so thank you to everyone at Andretti Cape. We’ll move on to Indy next week, and hopefully we can get some proper points.”
This race marked the official debut of Lottery.com and Sports.com branding on the No. 2 car and Murray’s race suit, with logos featured on the rear wing, front nose cone, and driver overalls — launching a full-season campaign that blends elite motorsport exposure with fan engagement and digital content.
Murray now prepares for a back-to-back test of endurance and precision at the Indianapolis Motor Speedway Road Course, with two INDY NXT races scheduled for May 9 and May 10.
“We’re incredibly proud of Sebastian Murray’s race,” said Marc Bircham, Director of Sports.com and Head of Sporting Acquisitions. “To qualify in the top 10 was an outstanding achievement. In my career, I’ve coached many young athletes, and the first few times on the big stage is nerve-racking. Seb showed great promise and made a gallant effort to move up to 8th position before the incident. Overall, we are pleased with his performance and are looking forward to seeing Sebastian progress as the season goes on. He’s definitely a driver for the future.”
“We were also delighted with the look of the car — the red and black design with Lottery.com and Sports.com branding stood out as the most attractive car on the grid.”
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/724aabd4-2a8b-4de7-ae2d-600625e48439
https://www.globenewswire.com/NewsRoom/AttachmentNg/32715559-f998-4b13-a748-cd122743c8be
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].
-
partnerships4 weeks agoOctoplay accelerates UK and Irish growth with strategic BoyleSports partnership
-
Latin America4 weeks ago
SOFTSWISS Ignites Brazil with ‘Race Like a Legend’ Experience
-
Asia3 weeks ago
Jetapult Strengthens AI Expertise: Onboards Industry Leaders, Oz Silahtar and Dr. Arjun Jain
-
Balkans4 weeks ago
Playson tightens grip on Croatian market with landmark Hrvatska Lutrija deal
-
Africa4 weeks ago
INCENTIVE GAMES SIGNS EXCLUSIVE DISTRIBUTION DEAL FOR NORTH AMERICA, EUROPE, SOUTH AFRICA AND UK WITH LIGHT & WONDER
-
Press Releases3 weeks ago
Colour the world your way in Supa Crew by Swintt’s Elysium Studios
-
Press Releases2 weeks ago
Swintt stacks up a pyramid of wins in Egypt King Pearl Upgrade
-
Compliance Updates2 weeks ago
MGCB Targets 11 Illegal Online Casinos Operating Without Licenses
