Lottery.com Regains Nasdaq Compliance as Stock Trading Activity Soars

Rhea-AI Summary

Lottery.com (NASDAQ: LTRY) has successfully regained Nasdaq compliance by maintaining a minimum bid price of $1.00 for twenty consecutive business days from May 21 through June 18, 2025. The company experienced significant market activity during this period, with daily trading volumes frequently exceeding 30 million shares and reaching a peak of 166 million shares on May 27, 2025. CEO Matthew McGahan highlighted this as a turning point, emphasizing the company's turnaround efforts. The company has strengthened its leadership with Tamer Hassan as President of Sports.com Studios and is actively investigating potential illegal short selling with legal advisors from Paul Hastings LLP.

Positive

• Successfully regained Nasdaq compliance, removing delisting risk
• Exceptional trading volume with peaks of over 166 million shares in a single day
• Strengthened leadership team with appointment of Tamer Hassan as President of Sports.com Studios
• Taking proactive legal measures against suspected illegal short selling

Negative

• Previous non-compliance with Nasdaq listing requirements indicates past financial challenges
• High trading volatility could suggest market speculation rather than fundamental strength

Insights

Capital Markets Analyst

Lottery.com's Nasdaq compliance restoration and surge in trading volume signals potential investor confidence recovery despite ongoing challenges.

Lottery.com's regained Nasdaq compliance represents a critical regulatory milestone for the company, removing an immediate delisting threat that has likely dampened investor sentiment. The requirement to maintain a $1.00 minimum bid price for 20 consecutive trading days demonstrates at least temporary price stability, though investors should note this doesn't necessarily reflect improved fundamentals.

The extraordinary trading volumes highlighted in the release—particularly the 166 million shares traded on May 27—indicate unusual market interest. Such volume spikes typically suggest either significant institutional positioning, retail momentum trading, or potentially, as the company itself suggests, market manipulation dynamics. While high volume can signal increased investor engagement, it can also reflect speculative trading rather than fundamental investment.

The company's mention of an investigation into suspected illegal short selling with Paul Hastings LLP suggests management believes external factors may be influencing the stock price. This narrative could be aimed at explaining previous price weakness while positioning recent compliance as overcoming artificial headwinds. However, the effectiveness of such investigations in producing actionable results remains uncertain.

The appointment of Tamer Hassan to lead Sports.com Studios hints at the company's diversification strategy into media and entertainment, though the release provides insufficient detail to evaluate the potential business impact of this leadership addition or how it connects to the core lottery business model.

FORT WORTH, Texas, June 23, 2025 (GLOBE NEWSWIRE) -- Lottery.com Inc. (NASDAQ: LTRY; LTRYW) (“Lottery.com” or “the Company”) received formal notice (the “Notice”) from The Nasdaq Stock Market LLC (“Nasdaq”) confirming that the Company has regained compliance with Nasdaq Listing Rule 5450(a)(1), which requires a minimum bid price of $1.00 (the “Rule”). The Company met this requirement by maintaining a closing bid price of $1.00 or higher for twenty consecutive business days from May 21 through June 18, 2025. Nasdaq has officially closed the matter.

This confirmation marks more than just a technical compliance milestone—it underscores the momentum Lottery.com has built in recent weeks. In the 20-day period leading up to regaining compliance with Rule, Lottery.com’s stock experienced exceptional market activity, with daily trading volumes frequently exceeding 30 million shares. On May 27, 2025, Lottery.com recorded trading volume of more than 166 million shares, ranking among the most actively traded stocks on Nasdaq that day.

Matthew McGahan, Chairman, CEO, and President of Lottery.com, commented:

“This isn’t just a moment of compliance—this is a true turning point. The level of engagement from the markets over the last 20 days, combined with our recent momentum, demonstrates that our turnaround is real, visible and gaining traction. We are entering our next chapter with a key compliance determination from Nasdaq, a reinforced leadership team and a Company that is starting to fire on all cylinders. Our investors have seen the difference—and the volume speaks for itself.”

As part of this renewed momentum, the Company recently appointed actor and media executive Tamer Hassan as President of Sports.com Studios, further strengthening its media and entertainment vertical. The Company also continues to work with legal advisors, including Paul Hastings LLP, in its investigation into suspected illegal short selling and is prepared to take legal action against any parties found to have manipulated its stock.

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.

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. 

For more information, please visit www.lottery.com or contact our media relations team at press@lottery.com.

FAQ

Why did Lottery.com (LTRY) regain Nasdaq compliance in June 2025?

Lottery.com regained compliance by maintaining a closing bid price of $1.00 or higher for twenty consecutive business days from May 21 through June 18, 2025, meeting Nasdaq Listing Rule 5450(a)(1) requirements.

What was the peak trading volume for LTRY stock in May 2025?

LTRY stock reached a peak trading volume of over 166 million shares on May 27, 2025, making it one of the most actively traded stocks on Nasdaq that day.

Who is the current CEO of Lottery.com?

Matthew McGahan serves as the Chairman, CEO, and President of Lottery.com.

What legal actions is Lottery.com taking regarding its stock?

Lottery.com is working with legal advisors, including Paul Hastings LLP, to investigate suspected illegal short selling and is prepared to take legal action against parties found to have manipulated its stock.

Who was recently appointed as President of Sports.com Studios?

Actor and media executive Tamer Hassan was recently appointed as President of Sports.com Studios.