Lottery.com is set to become a publicly-traded company on The Nasdaq Stock Market after entering into a binding letter of intent (LOI) for a business combination transaction with special purpose acquisition company (SPAC) Trident Acquisitions Corp.
Under the proposed transaction, 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.
Founded in 2015, Lottery.com is a leading online and mobile platform to play the lottery, offering official state-sanctioned lottery games, like Powerball, Mega-Millions and state games, in the U.S. and around the world. Lottery.com is also the world’s largest provider of lottery data to over 400 digital publishers, including hundreds of digital newspapers, television and news sites, and major digital publishers such as Google, Verizon/Yahoo, Amazon’s Alexa devices, among others. Its digital lottery platform provides lottery-related data such as current and previous winning numbers, jackpots and draw dates, jackpot analysis, covering almost 600 lottery games in 38 countries in real time.
Through its online platform, Lottery.com is 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 the company’s home state of Texas and nine other U.S. states with expansion plans into more than 20 U.S. 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.
From 2016 to 2019, Lottery.com grew revenues at a compounded annual growth rate of 279%, and the company anticipates accelerating that growth with the capital infusion from this potential transaction.
“Lottery.com has developed an innovative platform that is revolutionizing the lottery industry and bringing it into the digital age,” Marat Rosenberg, Chairman of Trident, said in a press release Thursday. “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. We also believe we can replicate our recent success story of bringing Triterras, Inc. public through a business combination with Netfin Acquisition Corp. As an experienced SPAC team with a track record in the blockchain-enabled online platform space, we look forward to introducing the story of Lottery.com to the public market.”
Co-founder and CEO of Lottery.com, Tony DiMatteo, commented: “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.”
Lottery.com is supported by an advisory board and investors within the venture capital, gaming and entertainment industries that includes Jason Robins, CEO of DraftKings; Peter Diamandis, Chairman of XPRIZE Foundation; Ben Narasin, Venture Partner of NEA; Paraag Marathe, President of 49ers Enterprises; Matthew Le Merle, Co-founder and Managing Partner of Fifth Era and Keiretsu Capital; Jamie Gold, The Poker Philanthropist.