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Lottery.com Announces Strong First Quarter Results

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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.”

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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.

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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.

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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

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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.

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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  
         

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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

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[email protected]

or

Jody Burfening/Harriet Fried

LHA Investor Relations

(212) 838-3777

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[email protected]

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Nasdaq:LTRY

Lottery.com Closes in on Legal Action Against Coordinated ‘Short and Distort’ Campaign

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FORT WORTH, Texas, June 27, 2025 (GLOBE NEWSWIRE) — Lottery.com Inc. (NASDAQ: LTRY, LTRYW) (“Lottery.com” or “the Company”), a leading technology company transforming the intersection of gaming, sports and entertainment, today confirmed that it is nearing legal proof of a coordinated and unlawful ‘short and distort’ campaign targeting the Company. In collaboration with its legal counsel, Paul Hastings LLP, the Company is actively pursuing all individuals and entities engaged in market manipulation intended to damage the Company’s share price and reputation.

Christopher Gooding, Independent Director of Lottery.com and a member of the Audit Committee with responsibility for legal affairs, issued the following statement:

“There is no doubt that there is an orchestrated campaign against Lottery. The trading metrics and forensic data we have access to clearly indicate both classic ‘short and distort’ tactics, and more seriously, a significant volume of naked short selling — illegal trades not backed by actual share ownership.

“These actors fall into three categories:

  • “Aggressive and embittered insiders, who appear to be leveraging confidential or insider information from their historical relationships with Lottery.com for self-serving purposes. I outlined elements of these insiders to the judge in a Delaware action earlier this year;
  • “Professional short-sellers, aided and abetted by complicit brokers — some of whom are actively engineering mechanisms to facilitate, or are willfully ignoring, illegal naked short activity; and
  • “Opportunistic traders, influenced by blogs, shorting platforms, and “pay-to-publish” media articles that amplify false and defamatory narratives. These clearly represent the ‘distort’ component of the campaign. Numerous cease-and-desist letters have already been issued.

    “Our message to these parties is unequivocal: We know who you are. We are rapidly securing irrefutable legal evidence of your involvement — including the brokers operating both in the U.S. and offshore in jurisdictions such as the Caribbean. We will pursue damages vigorously and refer the evidence to the appropriate regulatory authorities.

    “Your days are numbered. We will shut you down, and the financial penalties imposed will far exceed the unlawful profits you have sought to extract from our shareholders.”

Lottery.com reiterates its commitment to protecting shareholder value, market integrity, and the long-term growth of its global operations.

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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 XInstagram and Facebook.

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, expectations related to the investigation of short selling or potential naked short selling, including the Company’s analysis, its ability to take appropriate corrective action, or any potential investigations by regulators; 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.

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CONTACT: For more information, please visit www.lottery.com or contact our media relations team at [email protected]

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Nasdaq:LTRY

Lottery.com Announces $10 Million Acquisition of GXR World Sports Assets to Power Global Launch of Sports.com Super App

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FORT WORTH, Texas, June 26, 2025 (GLOBE NEWSWIRE) — Lottery.com Inc. (NASDAQ: LTRY, LTRYW) (“Lottery.com” or “the Company”), a leading technology company transforming the intersection of gaming, sports and entertainment, today announced it is advancing its global expansion with the planned launch of the Sports.com Super App (the “Super App”)—a first-of-its-kind digital destination for sports fans worldwide. The Super App is designed to combine live streaming, social engagement, e-commerce and gamification into a single immersive ecosystem.

The Super App, which is scheduled to launch in select global markets in Q3 2025, will initially focus on soccer and motorsport—two verticals Sports.com has been aggressively expanding into through a series of high-profile sponsorships and strategic initiatives. The Super App will be built on an existing platform development by Galaxy Racer Holdings Limited (“GXR”), The GXR app has achieved more than one million monthly active subscribers organically, demonstrating significant early traction and category-defining potential.

“We’ve spent the past two years building Sports.com around key pillars like soccer and motorsport,” said Mark Bircham, Director of Sports.com. “This acquisition and the launch of the Sports.com Super App is the culmination of a precise strategy to consolidate fragmented sports experiences. Our partnerships with emerging motorsport stars like Callum Ilott, Louis Foster, and Sebastian Murray, along with this technology acquisition sets the stage for an aggressive media expansion that will redefine how fans watch, play and engage with their favorite leagues, teams, and players.”

The Super App will integrate six primary features into a single experience: live streaming, community chat hubs, stats-based social media, e-commerce, real-money and fantasy sports gaming, and sports news. The Super App aims to engage fans across the full lifecycle of the sports experience, tapping into the 4–5 hours of average fan interaction beyond match time each week.

Revenue streams will include premium streaming subscriptions, in-app advertising, merchandising and interactive gamified challenges. Plans are underway to extend into additional sports verticals and incorporate immersive streaming experiences later this year.

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To accelerate the development timeline for the Super App, Lottery.com has signed a Letter of Intent (LOI) to acquire a 51% controlling interest in the sports and technology assets of GXR, valuing the transaction at $10 million pre-money. Subject to due diligence and final agreement, the deal allows Lottery.com to fund the $5.1 million initial investment via cash, stock, or a combination at a fixed $3.00 share price. A $15 million financing commitment has also been pledged by Lottery.com to fuel expansion of the Sports.com Super App.

All GXR unencumbered assets, including its tech stack and user base, will be transferred to a new entity (NewCo), of which Lottery.com will initially own 51%. The agreement includes a call option to acquire 100% ownership of NewCo by the end of 2027. Exclusivity has been secured through June 30, 2025, with an automatic 30-day extension, and closing is anticipated on or before August 1, 2025.

“This is a transformational moment for the worldwide sports media ecosystem,” said Paul Roy, Founder and CEO of GXR. “Together with Lottery.com and Sports.com, we are developing the world’s first true sports super app. As global licensing discussions advance, and integration with the Lottery.com family of brands begins, we see a future where fans control their entire live event experience—on the Super App, across all screens, in every corner of the globe.”

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 XInstagram and Facebook.

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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, expectations related to the investigation of short selling or potential naked short selling, including the Company’s analysis, its ability to take appropriate corrective action, or any potential investigations by regulators; 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].

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Nasdaq:LTRY

Lottery.com Appoints Tim Scoffham as CEO to Lead Global Expansion of Sports.com Media and Lottery.com International

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lotterycom-appoints-tim-scoffham-as-ceo-to-lead-global-expansion-of-sportscom-media-and-lottery.com-international

FORT WORTH, Texas, June 24, 2025 (GLOBE NEWSWIRE) — Lottery.com Inc. (NASDAQ: LTRY, LTRYW) (“Lottery.com” or “the Company”), a leading technology company transforming the intersection of gaming, sports and entertainment, today announced the appointment of Tim Scoffham as Chief Executive Officer of Sports.com Media Group Limited (“Sports.com Media”) and Lottery.com International Limited (“Lottery.com International”), effective immediately. The appointment follows a successful consultancy period beginning in May 2024, during which Tim helped shape the Company’s global growth strategy across iGaming and digital sports media.

With more than 20 years of leadership in gaming, media, and entertainment, Tim is widely recognized as a veteran operator in media, sports entertainment and gaming sectors. His international experience and ability to execute high-growth, regulated strategies across emerging markets make him an ideal fit to lead these businesses into their next chapter.

Tim will oversee the strategic integration and international expansion of Sports.com Media, a premium digital sports content and engagement platform, and Lottery.com International, the Company’s iGaming and international lottery division focused on delivering secure, compliant, and entertaining lottery experiences across key global markets. His leadership will focus on aligning commercial, media, and technology platforms, bolstering regulatory partnerships, and unlocking scalable, revenue-generating opportunities in high-growth jurisdictions.

“Our Company is delighted with this appointment,” said Matthew McGahan, CEO and Chairman of Lottery.com. “Tim brings energy, credibility, and international expertise. His bold, entrepreneurial leadership style and deep experience in both gaming and media are precisely what we need at this inflection point. We are seeing strong forward momentum in the business and the markets, and Tim’s appointment gives us further confidence in our global roadmap. He is fully aligned with our vision to build Lottery.com and Sports.com into powerhouse global brands.”

Tim Scoffham added: “It’s an incredibly exciting time to join Lottery.com in a full-time leadership capacity at Sports.com Media and Lottery.com International, both of which represent unique global opportunities. The Sports.com and Lottery.com brands sit at the intersection of sports, gaming, and immersive content, and I believe we’re only scratching the surface of what they can become. With outstanding teams already in place and a unified international strategy underway, I’m looking forward to accelerating growth, strengthening partnership, and delivering long-term value to Lottery.com shareholders.”

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About Sports.com Media
Sports.com Media Group Limited, a wholly-owned subsidiary of Lottery.com Inc., is a next-generation digital platform delivering premium sports content, immersive fan experiences, and real-time engagement to a global audience. Focused on innovation, original formats, and media-rights partnerships, Sports.com is shaping the future of sports storytelling and digital fan engagement.

About Lottery.com International
Lottery.com International Limited, a wholly-owned subsidiary of Lottery.com Inc., provides a secure and compliant iGaming and global lottery platform that enables users to participate in international lottery games through digital channels. The platform is focused on regulated market expansion, localized offerings, and sustainable, high-margin growth.

Under Tim Scoffham’s leadership, both businesses will continue the expansion of Sports.com and Lottery.com into globally recognized brands—driven by innovation, strategic execution, and an unwavering commitment to compliance and user experience.

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 XInstagram and Facebook.

Forward-Looking Statements

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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, expectations related to the investigation of short selling or potential naked short selling, including the Company’s analysis, its ability to take appropriate corrective action, or any potential investigations by regulators; 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/ddd041d2-dfd1-40b2-ae96-d48dad3d080e

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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