Nasdaq:LTRY
Lottery.com Announces Strong First Quarter Results
First quarter 2022 revenue of $21.2 million, up $15.7 million from the prior-year period
First quarter 2022 gross profit of $18.0 million, up $15.5 million from the prior-year period
First quarter 2022 net loss of $15.8 million, Adjusted EBITDA of $7.7 million1
AUSTIN, Texas, May 16, 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 first quarter ended March 31, 2022.
Tony DiMatteo, Lottery.com Co-Founder and CEO, commented, “I’m pleased with our first quarter results and the team’s continued focus on our core business and generating strong Adjusted EBITDA. Once again, LotteryLink has demonstrated its ability to contribute to our top and bottom line growth and expand our user base with limited advertising spend. In our B2C business, our focus on market testing and securing permission to advertise on large digital media platforms has solidified our foundation to launch accretive user acquisition campaigns over the balance of the year.”
Mr. DiMatteo continued, “So far in the second quarter, our B2C campaigns have been positive with solid increases in app downloads versus the prior year period while achieving relatively low customer acquisition costs. LotteryLink’s promotional programs have generated new users and created interest from additional national consumer brands looking to utilize LotteryLink for their marketing campaigns. Additionally, we have launched Phase 1 of Project Nexus. We believe that these positive developments, combined with our strong balance sheet, position us well for future growth.”
First Quarter 2022 Financial Highlights
| Q1 2022 Financial Highlights | Three Months Ended | |||||||||||||
| March 31, | ||||||||||||||
| 2022 | 2021 | Change | ||||||||||||
| (in millions) | ||||||||||||||
| Revenues | $ | 21.2 | $ | 5.5 | $ | 15.7 | ||||||||
| Gross profit | $ | 18.0 | $ | 2.5 | $ | 15.5 | ||||||||
| Net Loss | $ | (15.8 | ) | $ | (5.5 | ) | $ | (10.3 | ) | |||||
| Adjusted EBITDA | $ | 7.7 | $ | (2.6 | ) | $ | 10.3 | |||||||
| Cash | $ | 50.8 | $ | 18.3 | $ | 32.5 | ||||||||
| Debt | $ | 3.5 | $ | 41.5 | $ | (38.0 | ) | |||||||
1 – Adjusted EBITDA is a financial measure that is 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 Adjusted EBITDA and “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of this measure to net loss.
First quarter 2022 revenue was $21.2 million, an increase of $15.7 million, or 287%, from the first quarter of 2021. The growth was primarily driven by the sale of LotteryLink credits to a LotteryLink affiliate, primarily to acquire pre-paid promotional rewards that may be issued by such affiliate to consumers for their purchase of lottery games and services from Lottery.com upon activation of an account.
First quarter 2022 gross profit was $18.0 million, an increase of $15.5 million from the first quarter of 2021. The increase was primarily driven by the sale of LotteryLink credits to the above referenced LotteryLink affiliate. As a result of the delayed launch of such affiliate’s promotional program, most of the pre-paid promotional rewards expired without being issued to consumers. As a result, the Company did not incur costs associated with redemption of most of such LotteryLink credits.
First quarter 2022 net loss was $15.8 million compared to a net loss of $5.5 million in the first quarter of 2021. The increase was primarily driven by the incurrence of $22.2 million of non-cash stock compensation expense and other increased personnel costs, which were offset by the strong gross profit described above.
First quarter 2022 Adjusted EBITDA was $7.7 million, an increase of $10.3 million from the first quarter of 2021. The increase was driven by the strong gross profit described above, partially offset by increased public company expenses and higher expenses associated with the execution of growth initiatives.
Cash as of March 31, 2022, was $50.8 million, an increase of $32.5 million from March 31, 2021, driven primarily by proceeds from the business combination with Trident Acquisition Corp. in October 2021, and strong operating results, partially offset by an increase in working capital.
Debt as of March 31, 2022, was $3.5 million, a decrease of $38.0 million from March 31, 2021, driven primarily by the conversion of the Company’s convertible debt into equity, in conjunction with the business combination.
Update on Key Initiatives
- B2C User Growth
- Expanded B2C marketing campaigns have launched in Q2 2022 and resulted in solid increases in app downloads versus the prior year period
- Achieved customer acquisition costs in-line with expectations to date in Q2 2022
- LotteryLink and B2B
- Added new LotteryLink affiliates since the beginning of the year, including the conversion of data service customers
- Continued to develop pipeline of new LotteryLink master affiliates and their sub-affiliates, including national consumer brands
- Project Nexus
- Launched Phase 1 in Q2 2022, which is expected to improve scalability, security and ability to implement product improvements
- New Markets
- Remain on track for approval to enter into five new domestic jurisdictions by the end of 2022
Upcoming Conference Participation
Representatives from the Company plan to attend the following upcoming investor conferences:
- B Riley FBR 22nd Annual Institutional Investor Conference on May 26, 2022, in Beverly Hills, CA
- Cowen’s 50th Annual Technology, Media & Telecom Conference on June 1, 2022, in New York City
Conference Call
This morning at 8:30 AM ET, the Company will host a conference call to discuss its first quarter 2022 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 9189693. 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 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 EBITDA and Adjusted EBITDA are useful in evaluating our operating performance, similar to measures reported by our peers, and regularly used by analysts, investors and other interested parties in analyzing operating performance and prospects. 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 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 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,” “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. 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 risks and uncertainties: our inability to compete with other forms of entertainment for consumers’ discretionary time and income; economic downturns, inflation, geopolitical and political and market conditions beyond our control; negative events or media coverage relating to the lottery, lottery games or online gaming or betting; our inability to attract and retain users, including as a result of failing to appear in Internet search engine results; our continued ability to use domain names to promote and increase the value of our brand; adverse impacts relating to the spread of, and governmental responses taken with respect to, health epidemics such as the COVID-19; scrutiny by stakeholders with respect to responsible gaming and ethical conduct; our ability to achieve profitability and growth in the newly-developed market for online lottery games; our inability to profitably expand into new markets or capitalize on new gaming and lottery industry trends and changes, such as by developing successful new product offerings; the effectiveness of our marketing efforts in developing and maintaining our brand and reputation; failure to offer high-quality user support; adverse impacts to user relationships resulting from disruptions to our information technology; the vulnerability of our information systems to cyberattacks and disruptions caused with respect thereto, including an inability to securely maintain personal and other proprietary user information; our inability to adapt to changes or updates in the Internet, mobile or personal devices, or new technology platforms or network infrastructures; the exposure of our online infrastructure to risks relating to new and untested distributed ledger technology; our inability to comply with complex, ever-changing and multi-jurisdictional regulatory regimes and other legal requirements applicable to the gaming and lottery industries; geopolitical shifts and changes in applicable laws or regulations or the manner in which they are interpreted; our inability to successfully expand geographically and acquire and integrate new operations; our dependence on third-party service providers to timely perform services or software component products for our gaming platforms, product offerings and the processing of user payments and withdrawals; our inability to maintain successful relationships and/or agreements with lottery organizations and other third-party marketing or service provider affiliates; failure of third-party service providers to protect, enforce, or defend intellectual property rights required to fulfill contractual obligations required for the operation of our business; the effectiveness of our transition and compliance with the regulatory and other requirements of being a public company; operational risks including those arising from factors impacting the international supply chain; limited liquidity and trading of our securities; and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K filed by Lottery.com with the SEC on April 1, 2022, 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 March 31, 2022 and 2021 | |||||||||
| Three Months Ended March 31, | |||||||||
| 2022 | 2021 | ||||||||
| Revenue | $ | 21,150,892 | $ | 5,461,539 | |||||
| Cost of revenue | 3,165,469 | 2,946,981 | |||||||
| Gross profit | 17,985,423 | 2,514,558 | |||||||
| Operating expenses: | |||||||||
| Personnel costs | 25,975,863 | 1,095,793 | |||||||
| Professional fees | 3,055,039 | 2,415,198 | |||||||
| General and administrative | 3,399,896 | 1,388,574 | |||||||
| Depreciation and amortization | 1,373,925 | 367,259 | |||||||
| Total operating expenses | 33,804,723 | 5,266,824 | |||||||
| Loss from operations | (15,819,300 | ) | $ | (2,752,266 | ) | ||||
| Other expenses | |||||||||
| Interest (income) expense | (953 | ) | 2,472,048 | ||||||
| Other (income) expense | (2,436 | ) | 231,720 | ||||||
| Total other expenses, net | (3,389 | ) | 2,703,768 | ||||||
| Net loss before income tax | $ | (15,815,911 | ) | $ | (5,456,034 | ) | |||
| Income tax expense (benefit) | – | ||||||||
| Net loss | (15,815,911 | ) | (5,456,034 | ) | |||||
| Other comprehensive loss | |||||||||
| Foreign currency translation adjustment, net | (1,064 | ) | – | ||||||
| Comprehensive loss | (15,816,975 | ) | (5,456,034 | ) | |||||
| Net income attributable to noncontrolling interest | 129,222 | – | |||||||
| Net loss attributable to Lottery.com Inc. | (15,687,753 | ) | (5,456,034 | ) | |||||
| Net loss per common share | |||||||||
| Basic and diluted | $ | (0.33 | ) | $ | (0.24 | ) | |||
| Weighted average common shares outstanding | |||||||||
| Basic and diluted | 46,832,919 | 22,888,700 | |||||||
| Lottery.com Inc | ||||||||
| Condensed Consolidated Balance Sheet | ||||||||
| Unaudited | ||||||||
| March 31, | December 31, | |||||||
| ASSETS | 2022 | 2021 | ||||||
| (Unaudited) | ||||||||
| Current assets: | ||||||||
| Cash | $ | 50,795,889 | $ | 62,638,970 | ||||
| Accounts receivable | 35,796,548 | 21,696,653 | ||||||
| Prepaid expenses | 12,843,029 | 13,896,638 | ||||||
| Other current assets | 246,599 | 226,200 | ||||||
| Total current assets | 99,682,065 | 98,458,461 | ||||||
| Notes receivable | 6,500,000 | – | ||||||
| Investments | 250,000 | 250,000 | ||||||
| Goodwill | 19,590,758 | 19,590,758 | ||||||
| Intangible assets, net | 28,500,219 | 28,710,980 | ||||||
| Property and equipment, net | 121,293 | 141,279 | ||||||
| Total assets | $ | 154,644,335 | $ | 147,151,478 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Trade payables | $ | 2,559,846 | $ | 1,006,535 | ||||
| Deferred revenue | 544,643 | 662,335 | ||||||
| Notes payable – current | 3,477,339 | 3,771,340 | ||||||
| Accrued interest | 180,281 | 176,260 | ||||||
| Accrued and other expenses | 4,081,672 | 4,528,815 | ||||||
| Total current liabilities | 10,843,781 | 10,145,285 | ||||||
| Long-term liabilities: | ||||||||
| Other long term liabilities | 1,522 | 1,169 | ||||||
| Total long-term liabilities | 1,522 | 1,169 | ||||||
| Total liabilities | 10,845,303 | 10,146,454 | ||||||
| Commitments and contingencies | ||||||||
| Equity | ||||||||
| Controlling Interest | ||||||||
| Preferred Stock, par value $0.001, 1,000,000 shares authorized, none issued and outstanding | – | – | ||||||
| Common stock, par value $0.001, 500,000,000 shares authorized, 46,928,367 and 46,808,251 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 46,928 | 46,808 | ||||||
| Additional paid-in capital | 263,022,161 | 240,411,298 | ||||||
| Accumulated other comprehensive loss | (1,719 | ) | (655 | ) | ||||
| Accumulated deficit | (121,919,207 | ) | (106,232,518 | ) | ||||
| Total Lottery.com Inc. stockholders’ equity | 141,148,163 | 134,224,933 | ||||||
| Noncontrolling interest | 2,650,869 | 2,780,091 | ||||||
| Total Equity | 143,799,032 | 137,005,024 | ||||||
| Total liabilities and stockholders’ equity | $ | 154,644,335 | $ | 147,151,478 | ||||
| Lottery.com Inc. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| Three Months Ended March 31, 2022 and 2021 | ||||||||
| For the three months ended | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| Cash flow from operating activities | ||||||||
| Net loss attributable to Lottery.com Inc. | $ | (15,686,689 | ) | $ | (5,456,034 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Net income attributable to noncontrolling interest | (129,222 | ) | – | |||||
| Depreciation and amortization | 1,373,925 | 367,259 | ||||||
| Non-cash interest expense | – | 1,841,807 | ||||||
| Stock-based compensation expense | 22,174,488 | 2,160 | ||||||
| Changes in assets & liabilities: | ||||||||
| Accounts receivable | (14,099,895 | ) | – | |||||
| Prepaid expenses | 1,053,609 | 894,872 | ||||||
| Other current assets | (20,399 | ) | (54,853 | ) | ||||
| Trade payables | 1,553,311 | (354,736 | ) | |||||
| Deferred revenue | (117,692 | ) | (2,039,113 | ) | ||||
| Accrued interest | 4,021 | (605,961 | ) | |||||
| Accrued and other expenses | (10,648 | ) | 1,512,125 | |||||
| Other long term liabilities | 353 | – | ||||||
| Net cash provided by operating activities | (3,904,838 | ) | (3,892,474 | ) | ||||
| Cash flow from investing activities | ||||||||
| Purchases of property and equipment | (18,305 | ) | (57,452 | ) | ||||
| Purchases of intangible assets | (1,124,873 | ) | (3,050,000 | ) | ||||
| Net cash used in investing activities | (1,143,178 | ) | (3,107,452 | ) | ||||
| Cash flow from financing activities | ||||||||
| Issuance of digital securities | – | 108,332 | ||||||
| Proceeds from exercise of options and warrants | – | 895 | ||||||
| Proceeds from issuance of convertible debt | – | 19,282,619 | ||||||
| Issuance of notes receivable | (6,500,000 | ) | – | |||||
| Principal payments on debt | (294,001 | ) | (4,856,250 | ) | ||||
| Net cash provided by financing activities | (6,794,001 | ) | 14,535,596 | |||||
| Effect of exchange rate changes on cash | (1,064 | ) | – | |||||
| Net change in net cash and restricted cash | (11,843,081 | ) | 7,535,670 | |||||
| Cash and restricted cash at beginning of period | 62,638,970 | 10,775,511 | ||||||
| Cash and restricted cash at end of period | 50,795,889 | 18,311,181 | ||||||
| SUPPLEMENTAL DISCLOSURES: | ||||||||
| Interest paid in cash | $ | – | $ | 24,280 | ||||
| Taxes paid in cash | $ | – | $ | – | ||||
| Non cash investing and financing activities | ||||||||
| Stock-based compensation expense | $ | 194,695 | $ | – | ||||
| Issuance of warrants | $ | 241,800 | $ | – | ||||
| Conversion of convertible debt into common stock | $ | – | $ | 935,000 | ||||
| Purchase of intangible assets through the issuance of convertible debt | $ | – | $ | 15,450,000 | ||||
| Lottery.com Inc. | |||||||||||||||
| Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, | |||||||||||||||
| 2022 | 2021 | Change | |||||||||||||
| (in millions) | |||||||||||||||
| Net income (loss) | $ | (15.8 | ) | $ | (5.5 | ) | $ | (10.4 | ) | ||||||
| Interest (income) expense | (0.0 | ) | 2.5 | (2.5 | ) | ||||||||||
| Income tax expense (benefit) | – | – | – | ||||||||||||
| Depreciation and amortization expenses | 1.4 | 0.4 | 1.0 | ||||||||||||
| EBITDA (non-GAAP) | (14.5 | ) | (2.6 | ) | (11.8 | ) | |||||||||
| Non-cash stock compensation expense | 22.2 | 0.0 | 22.2 | ||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 7.7 | $ | (2.6 | ) | $ | 10.3 | ||||||||
Lottery.com Contact:
Matthew Schlarb
VP, Investor Relations
(512) 585-7789
or
Jody Burfening/Harriet Fried
LHA Investor Relations
(212) 838-3777
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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