Lottery.com Enters Final Phase of Turnaround with $250M Growth Strategy, Strategic Acquisitions, and Shareholder Engagement
Rhea-AI Summary
Lottery.com (LTRY) has announced the final phase of its two-year corporate turnaround, featuring a comprehensive $250M growth strategy. The company has secured $100M from Generating Alpha and $150M from United Capital Investments London (UCIL) to fund strategic initiatives.
Key developments include a complete Board overhaul, formation of a strategic Advisory Board, and C-suite restructuring with Matthew McGahan as CEO. The company has appointed Cohen & Company Capital Markets as investment banker and Crowell & Moring as global counsel.
The secured funding will be deployed for:
- Building or acquiring technology for Lottery.com and Sports.com
- Completing revenue-generating acquisitions
- Strengthening the balance sheet
- Expanding gaming operations
The company plans to host its first shareholder webinar in over three years and issue a formal shareholder communication in the coming weeks.
Positive
- Secured $250M in strategic funding ($100M from Generating Alpha, $150M from UCIL)
- Successfully defended dozen+ legal cases, reducing litigation risks
- Appointed established investment banker Cohen & Company Capital Markets
- Complete leadership restructuring with experienced board and executive team
Negative
- No gaming operations revenue currently, pending resumption
- Potential shareholder dilution from recently filed S-1
- Company still needs to regain compliance with Nasdaq listing requirements
- Ongoing internal accounting controls review
Insights
Lottery.com secures $250M in funding facilities while concluding a two-year turnaround, targeting acquisitions and technology development to drive future revenue growth.
Lottery.com's announced funding facilities represent a significant capital infusion as the company concludes its two-year turnaround effort. The secured funding totals
The capital is earmarked for four strategic priorities: cash-generative acquisitions, technology development for both Lottery.com and Sports.com platforms, resumption of gaming operations, and balance sheet strengthening. The emphasis on "cash-generative acquisitions" indicates a disciplined approach focused on immediate revenue contribution rather than speculative growth.
The company has successfully defended "more than a dozen legal cases," eliminating significant contingent liabilities and reducing operational risk. This legal cleanup is a critical prerequisite for stabilizing operations and rebuilding investor confidence.
While the funding arrangements and strategic direction show positive momentum, the announcement lacks specific metrics regarding current revenues, profitability targets, or the financial impact of the planned acquisitions. The recently filed S-1 mentioned in the article suggests potential equity issuance, though terms and potential dilution impacts aren't specified. The focus on "resuming gaming operations" indicates previous interruption of core revenue streams, though the timeline and projected financial impact of this resumption remain unstated.
Complete leadership overhaul at Lottery.com signals recovery from governance issues, with renewed focus on transparency after three years without shareholder webinars.
The comprehensive governance restructuring at Lottery.com reveals the depth of their corporate rehabilitation effort. The complete Board of Directors replacement and formation of a strategic Advisory Board comprising industry experts suggest previous significant governance deficiencies that necessitated wholesale changes rather than incremental improvements.
The C-suite rebuild is equally extensive, with Matthew McGahan expanding from Non-Executive Chairman to CEO and President of both Lottery.com and Sports.com. The company appointed Robert Stubblefield as CFO and Gregory Potts as COO, completing the executive team refresh. Further emphasizing the clean break from previous management, all prior legal counsel has been replaced, with Crowell & Moring now serving as global counsel.
Particularly telling is the announcement of a shareholder webinar – their first in more than three years – which signals a marked shift in investor communications approach. This extended gap in direct shareholder engagement points to a previous period of minimal transparency that management is now actively addressing. The explicit mention of "building public trust" in their communications strategy indicates recognition of reputational damage requiring deliberate rebuilding.
The appointment of Cohen & Company Capital Markets as investment banker, alongside the secured funding facilities, demonstrates a structured approach to capital management. This methodical governance reset appears focused on establishing both operational competence and investor credibility – essential elements for a company emerging from what was clearly a challenging period requiring comprehensive rehabilitation.
FORT WORTH, Texas, April 28, 2025 (GLOBE NEWSWIRE) -- Lottery.com Inc. (Nasdaq: LTRY, LTRYW), a leading provider of digital lottery, sweepstakes, and sports entertainment technology, today announced that it is planning its first shareholder webinar in more than three years to be held in the coming weeks as part of its continued commitment to transparency, engagement and building trust. Chairman and CEO Matthew McGahan will also be issuing a formal communication to shareholders providing insight into the Company’s strategic progress and vision for growth.
These initiatives come as the Company nears the successful conclusion of a two-year corporate turnaround, which has positioned Lottery.com for long-term operational strength, strategic expansion, and shareholder value creation.
Matthew McGahan, Chairman and CEO of Lottery.com, commented:
“As we approach the final phase of this disciplined turnaround, now is the right time to directly engage with our shareholders, share our roadmap, and outline the exciting opportunities ahead. This journey has always been about rebuilding with integrity and ambition—and we’re ready to deliver.”
A Comprehensive Turnaround from the Top Down:
- Board and Governance: Complete overhaul of the Board of Directors, installing experienced leadership committed to transparency and growth. Additionally, the Company formed a strategic Advisory Board in February 2025, comprising industry leaders and experts guiding international expansion, responsible gaming, and technological innovation.
- C-Suite Rebuild: Restructuring of the executive team, with McGahan transitioning from Non-Executive Chairman to CEO and President of both Lottery.com and Sports.com. Additionally, the Company appointed Robert Stubblefield as its Chief Financial Officer and Gregory Potts as its Chief Operating Officer.
- Legal and Compliance Reset: Replacement of all prior legal counsel, with new representation including the recent engagement of recognized Crowell & Moring as the Company’s global counsel.
- Capital Markets and Strategic Funding: Appointment of Cohen & Company Capital Markets as investment banker, alongside securing
$100 million from Generating Alpha Ltd. and$150 million from United Capital Investments London (UCIL). These facilities are being deployed strategically to drive shareholder value through cash-generative acquisitions; cutting-edge technology development and investment; resumption and expansion of gaming operations that drives revenues; and building balance sheet strength.
Strategic Use of Funding for Growth:
The Company emphasizes that capital secured through its funding facilities, including the recently filed S-1, will be strategically deployed to:
- Build or acquire state-of-the-art technology for Lottery.com and Sports.com, enabling immersive, live-streaming sports media and enhanced fan engagement.
- Close advanced stage, revenue generative acquisitions, designed to accelerate profits and deliver shareholder value.
- Strengthen the Company’s balance sheet and fund innovation across its digital lottery and sports entertainment platforms.
Legal Success and Stability:
Lottery.com has successfully defended more than a dozen legal cases, eliminating key litigation risks and solidifying the foundation for future growth.
Vision for 2025 and Beyond:
With the turnaround nearly complete, the Company is focused on increasing revenues through resuming gaming operations and monetizing Sports.com and completing certain acquisitions that will accelerate profitability and shareholder value.
Engaging with Shareholders:
As part of the Lottery.com’s continued commitment to transparency, shareholder engagement and building public trust, the Company plans the following:
- Webinar: The Company shall host a shareholder webinar in Q2.
- Shareholder Letter: A formal communication from Chairman and CEO Matthew McGahan to the Company’s shareholders will be issued in the coming weeks.
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.
For more information, please visit www.lottery.com or contact our media relations team at press@lottery.com.
FAQ
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