Lottery.com is set to become a publicly-traded company on the Nasdaq stock market after Trident Acquisitions Group signed a binding letter of intent (LOI) to acquire the broker.
Founded in 2015, Lottery.com is an online platform offering official state-sanctioned lottery games, like Powerball, Mega-Millions and state games, in the US and around the world, and it’s a provider of lottery data to over 400 digital publishers.
Its digital lottery platform provides valuable lottery-related data, such as current and previous winning numbers, jackpots and draw dates, jackpot analysis and more, covering almost 600 lottery games in 38 countries in real-time.
The Texas-based company has worked closely with state regulators to advance the industry into the digital age, providing official lottery games increased revenues and better regulatory capabilities by developing innovative blockchain technology, while also capturing untapped market share, including Millennial players.
The platform is currently live in 10 US states with expansion plans into more than 20 states and several new countries in 2021. Additionally, it is the only lottery platform authorized to sell Powerball tickets in 148 countries, with rapid international expansion plans for next year.
Co-founder and CEO of Lottery.com, Tony DiMatteo, said: “Since the inception of Lottery.com, it was our aim to cooperatively transform a legacy industry with innovative technologies and capture significant market share of a large population of smartphone-using potential customers.
“We have already been successful in our mission, accelerating revenue growth each year, expanding our footprint and making the lottery much more accessible to modern consumers through an easy-to-use and secure mobile application and core technology.
“As we look to further capitalize on current trends with more consumers shopping from home and interacting through mobile applications than ever before, we believe the business combination with Trident will provide us ample capital to accelerate our growth and enter our next stage as a public company.”
From 2016 to 2019, Lottery.com grew revenues at a compounded annual growth rate of 279%, and it anticipates accelerating that growth with the capital infusion from this potential transaction.
Marat Rosenberg, Chairman of Trident, added: “Lottery.com has developed an innovative platform that is revolutionizing the lottery industry and bringing it into the digital age. The company has developed a world-class safe and secure mobile lottery platform that provides users the ability to play official lottery games right from their phone.
“Lottery.com is developing blockchain technology to maintain an accurate ledger of each transaction, significantly curtailing the ability for fraudulent activity. With a track record of substantial revenue growth and user base expansion in a relatively short period of time, we believe that Lottery.com has the potential to cement its place as the leading online platform to play the lottery worldwide.”
The proposed transaction contemplates that Lottery.com’s stockholders will roll 100% of their equity into the business combination with no minimum cash requirement. The parties intend to execute a definitive agreement and currently anticipate closing the business combination in the first quarter of 2021.