Good afternoon, everyone. I'd like to introduce you to Lottery.com. The stock symbol is LTRY. It currently has roughly a $40 million market cap. I look at this year as a reset year, and the company may be viewed as even an entirely new revamped company. I welcome Lottery.com management and Matt to explain the outlook for Lottery.com. Thanks, Matt, for joining us, and thanks, Greg, as well.
Thanks, Michael. Nice to be here.
I'll let you go ahead and do your presentation.
Excellent. Okay, thank you for that. Look, this is a story for those that do not know of a turnaround and one that the new management team pointed out over the last couple of years has undertaken to ensure that we turn this company around. That is what the story of today is all about. Just to give you a brief synopsis on who we are and how Lottery started, it listed on Nasdaq back in October 2021 with a peak valuation of over $900 million, operated in 12 U.S. states and more than 20 international jurisdictions. The company was doing exceptionally well, and there was great brand visibility. What I can see of what I could see was a really neat business model. The team also acquired, I believe, in 2021, the acquisition of Sports.com, which would be the gateway to global sports media.
Slide two, please. That brings us to the summer of 2022, which is when I was first introduced to Lottery.com. Unfortunately, that was off the back of the collapse of Lottery.com and financial restatements and resignations. A little bit about our background: myself and my management team, we specialize in turnarounds. This was introduced to us back in, as I said, summer of 2022. We took a look at the company and decided that if we were to be involved, it would need a complete restructure. After many days of negotiations, etc., that's precisely what it is that we did. First and foremost, a new leadership team. We instilled a new board and C-suite. We structured the C-suite and started setting about building out two new business models for Lottery.com and Sports.com. We were unfortunately delisted from Nasdaq back in May of 2023.
One of the challenges would be to regain Nasdaq compliance, cooperation with the regulatory and law enforcement investigations into the prior management. I think it was pretty public, as you'd expect, and all of the information is out there in terms of what the company went through and what it was being investigated for from 2021 through to 2022. Of course, try and restore shareholder confidence and demonstrate that there was a roadmap back to success, restoring confidence. That is why we're here today, as we're delighted to announce that after two years, we believe the turnaround, in effect, has been achieved. Slide three, please. Thank you. What have we been doing over the last couple of years?
Some of the milestones that we've achieved in that time, of course, we're addressing the delinquencies and the deficiencies in things like the financial filings, working with our auditors, working with the SEC and Nasdaq. Of course, restructuring debt and liabilities when a company collapses. As we all know, there are always skeletons in the cupboard that need to be addressed from creditors and debt liabilities. Priority number one was to restore or get relisted back onto Nasdaq. That was a real journey that myself and the management team went through from May 2023 through to, I think it was the end of June when we addressed the Nasdaq team and dealers panel and managed to convince them to reinstate Lottery.com back onto the Nasdaq. Followed by the S-1 registration.
This was a huge milestone for us since summer of last year, finally declared effective in May of 2025. Funding, of course, is paramount to well and good restructuring the company and dealing with its liabilities and getting it back onto Nasdaq. Ensuring that it was properly funded was one of our main priorities. I am pleased to announce that we have done that successfully, ensuring that we had $250 million in financing secured and building out two new business models for Lottery.com and Sports.com. Over the last three months since February of this year, we have been actively working towards announcing the funding for the company and the effectiveness of the S-1, as well as ensuring that our financials were up to date and filed on time. Following that, the company has been on an active brand-building exercise.
In doing so, we've made some relatively recent major announcements recently. Firstly, we've worked with INDYCAR and INDY NXT and sponsored three young drivers, two in the INDYCAR and one in the INDY NXT. All of those were announced a couple of weeks ago for the Indy 500 in Indianapolis. What an exciting launch that was to have both brands showcased at such a prestigious racing event, one of the largest racing events in the world. We've announced an LOI with Concerts.com and the acquisition, including TicketStub.com. The LOI was signed a couple of weeks ago, and imminently, we will be announcing the completion of this deal. We announced in March launch of Sports.com Studios. This is original content production distribution, so we can produce our own content from some of the social media content that little things do to Sports.com originals in both sport, film, and documentary.
Recently, we made the announcement, I believe it was middle of last week, the appointment of Paul Hastings, LLP in order to help with governance enhancement and just have a look at the way that the company has been traded over the last couple of years. We also made a strategic tech acquisition in March of this year and announced that. That deal is now fully completed, and we are looking to go operationally live by the end of this quarter. 11 lawsuits had been dismissed or won. The company has been under attack from all sorts of different routes. We are delighted that we have built a wonderful legal team that have slowly batted these lawsuits away from the company and acquired Lottery and Sweepstakes platform to support the international business and really looking to establish ourselves in the Middle East.
We announced one of our first acquisitions last year, which is Nook, based in the UAE, which is an incubator for new sporting businesses, new start businesses looking to set up in the Middle East. Looking forward, how do we scale Lottery.com internationally, monetize Sports.com, media events, and partnerships, strategic acquisitions in media, sports, and technology, and sharpen the focus and shareholder value with brand leadership? All of those are headings that we are looking to catalyze on over the next three to four weeks.
Great, Matt. Thank you for your presentation. Greatly appreciate that. I know you made a couple of acquisitions here. I was just wondering, can you kind of give us an update on where the capital structure is today?
Sorry, just to clarify on that question, specifically for those two acquisitions or in general?
No, in general.
We have announced two facilities that will support this aggressive buy-and-build strategy that the company's got in place, both for Lottery and for Sports.com. One facility, which was announced in November of 2023 and voted on by the shareholders, is for $150 million. Recently, in the effective S-1, we announced a separate $100 million facility that is effective now and will assist in not only supporting these two acquisitions that we've discussed today, but we have a pipeline of acquisitions that we would like to complete on during 2025.
Yeah. Just staying on that theme, you've targeted a number of acquisitions, as you mentioned. Can you talk about maybe the allocation in terms of investment spend, whether it be for your gaming or your sports? Where are you finding the more, I guess, the better opportunities at this point?
It is a combination, really, because they are both wonderful brands. We have been working with both of the brands for the last two years, frankly, turning the company around. We have not really been able to concentrate on expanding the brands into territories, new businesses, look at acquisitions that will help support those brands until really the last six months. That is when both business models have really taken shape. Lottery.com, I think fundamentally, the business plan was sound, building tech for the purchase of lottery tickets in order to purchase those from a device anytime, anywhere you wish, as opposed to the rather old-fashioned way of buying lottery tickets from the gas station or the local 7-Eleven, etc. It made absolute sense. When I first looked at it, that just looks—that is just a no-brainer. I mean, it is absolutely the way lotteries should go forward.
Certainly, from the company's point of view, we're still very much looking at that model and looking to complete the tech that the company was working on back in 2022 and 2023, but also looking to expand Lottery.com and expand that brand. I just think that there is a—the company believes there is just a great opportunity to build a marketplace under the brand Lottery.com. There is only one Lottery.com and make it accessible to 880 other lotteries that function around the world, build out a supermarketplace where we can all work together. There is so much you can do when everybody has a similar goal and similar outlook. Domestically, it's vital that we rejuvenate the lottery brand within its home market. As one of the slides referred to earlier, they were operating in 12 states.
There's no reason why we shouldn't be able to get back to that domestically. Internationally, I think, is where the real opportunity is for Lottery.com by building out this marketplace. That takes two things, really, two key ingredients. That's one, brand awareness, which we've already started. Two is to ensure we've got the right tech that can handle this type of gaming and make it attractive to these other lotteries. Of course, with a brand like Lottery.com, it just opens up so many other revenues, so many other doors to all sorts of types of gaming, including Sweepstakes, which we restarted a few weeks ago, running a trial for the Miami Grand Prix, which was a great success.
I can't give you an exact figure as to what we are effectively directing towards the operations and tech building and brand building for Lottery.com, but it's substantial. For Sports.com, as I mentioned earlier, it really is an aggressive buy-and-build strategy. Sports.com, it's a really interesting model. It's split into two verticals, if you like. Firstly, that's Sports.com Media and then Sports.com Ventures. Whilst I could talk about this side of the business all day because it's so exciting and sport is just such a capturing business in itself, look, again, it's a tech play for Sports.com Media. We're looking at ways of live streaming events through using our tech, but in a way that, frankly, hasn't been done before.
That is really capturing new audiences and offering something different, making whatever event it is that we're streaming fully immersive and doing it in such a way that it gets to your device without these crazy lags. It's crystal clear. As I say, fully immersive so our new users will feel fully engaged. On the other side to that, we have Sports.com Ventures. That really is anything that we feel works in terms of promoting the brand internationally. That is looking at a whole host of different sports. It's pretty apparent that we've been concentrating on motorsport over the last few weeks. Frankly, there are many sports that we are in discussions with right now. Over the next few weeks and months, we'll be excited to make some more announcements.
Thanks for that color, Matt. I do want to mention to everyone that's listening that they do have the opportunity to ask questions. If you could go ahead and type in your questions in the Q&A box on the lower end of your screen. I'll keep going and asking questions, and we'll get to as many of these as possible. You mentioned about your two-pronged strategy as your development in lottery gaming operations domestically and internationally. On the domestic side, you mentioned that there are 20 markets that you had previously were, I guess, okay to operate in. What are the legal hurdles? I guess you have to go through hurdles to kind of get reinstated in those 20 markets. How long of a process might that be? And then are there additional markets that states, for instance, that you need to kind of pursue?
Internationally, are there certain countries that you're targeting at first or maybe can give us a roadmap for maybe your international expansion?
Yeah. I mean, the answer to your question is, yes, it's complicated. You have a lot of states. They operate as individual countries in some cases. The legal work that needs to be applied to each of those states, it's substantial. The company's gone through it before, and we have a team, particularly on the legal side, that I have every confidence in. There are certain states that it is much easier to operate in than other states. You still have some states where it's not legal at all. I think it really depends on which states that we're looking to operate in first and whether it is just purely with lottery or other forms of gaming. Some of those can be done very quickly.
In fact, now that we have passed that milestone of the turnaround over and done with, operations is key. The team are actively working on that now. I will hope that within the next three to four weeks, certainly within a month, we will have a clear roadmap as to which states that we've identified first. Internationally, it's a similar story. Of course, you only really want to work with countries where gaming such as this is legal and you can apply and get the correct licenses, etc. It's exciting when you're looking at the international markets because it opens up a whole different raft of games that we can be involved in. Exactly the same principle applies.
It really is probably 60% is desiring you want to get in there, and you'll find a team that you can work with, and you have the same synergies. It is really the legal work that takes some time. Again, we are well aware of the countries that we've identified that we want to work with, and we have teams already deployed and working on roadmaps now.
In the states that you're targeting, the 20 states that you had previously, does the brand actually help you? I mean, the Lottery.com brand, does that help you open the doors, or do you think that there were some issues with the previous management that may have kind of muddied the waters with that going through the hurdles?
There is no question that we have some legacy issues that we need to deal with and have dealt with. We have a sound story. I believe if you call us the cleanup crew, I think we have done a great job. The only difference with this project and other projects is that we want to see it through. Absolutely, I would say 100% of the team, we are all dedicated to building these brands, building the business models out. To answer your question, I think we will have some legacy issues to deal with in certain states. Does the brand help? Absolutely. Of course, it does. Lottery.com, there cannot be a better brand out there. You cannot just because you are the owner of Lottery.com and think, "That is it." It opens all of the doors in any state that you choose, and you can just crack on.
It's more than that. I think that certainly being a public company helps. The fact that we've got great shareholders, super investors, and a really good structure going forward, I think there will be some hurdles to overcome. Once they see what the model really looks like and they understand the people that they're dealing with, I don't have any concerns. I think that we'll be back up and running very quickly this year.
Gotcha. A question here from the field. Are there plans to utilize blockchain in both lottery and sports sectors, like leveraging NFT technology?
The answer to that has to be yes, does it not? Because we are a tech company, and what a fluid world we live in right now when it comes to tech. I think that if you had asked me that question two years ago, the answer would be very different to what you would get today because tech is moving so fast. Now AI is a full part of that tech where perhaps it was not a couple of years ago. Blockchain technology, payment platforms, etc., is an absolute must. You have this whole raft of new technology coming up in the shape of AI, which, frankly, changes for the better, in my view, but changes the way that your tech is going to operate. Monthly, you have to stay on top of it. I think that is a long-winded way, and I apologize for answering yes is the answer.
Of course, all of those elements will be used.
Gotcha. Lottery.com has been, or I guess has had the unique distinction of being the only company to regain Nasdaq listing after being delisted. Now that you've been successful in your recent capital raise, how do you plan to enhance shareholder value going forward?
Yeah, thanks for asking that question. I remember that day well. I'm not sure we're the only one. I think we're maybe one or two in the last 10 years, but it was certainly an experience, not one I want to go through again. We shall ensure that doesn't happen. Look, how do we create shareholder value? I think we've demonstrated the roadmap that we're on over the last six weeks. I know from a shareholder's point of view, it may have looked as though we'd gone quiet over the last couple of years. Without looking too far back into the past, it's been a challenge. It's certainly been one of the biggest challenges that I've taken on before.
I'm sure if you ask the team, they say the same thing, that it's been a hard slog with Lottery.com to get it where it is today. Whilst I'd like to have achieved the turnaround in a year, it's taken two. It's exactly the amount of time that we gave ourselves to get it turned around to this point. From a shareholder's point of view, you've just not seen enough positive news. People are sick of talking about the past. They want to talk about the future. How does the company look this year, next year, and the year after? I think that the last eight weeks judges on that. I believe we've put a solid foundation down. I think we've got a great vision that is now turning into reality for both Lottery and Sports.com.
Of course, being funded helps deliver that vision quickly. It does not mean that we are going to burn through all of the cash over the next few weeks. It is strategic that we plan, that we have built for the next 12 months and 24 months. I think the biggest turnaround, the biggest change that shareholders will see will be in the next six months. The way you build shareholder value is, frankly, get the business operational as quickly as we can. That is happening now. Start to generate cash and prove that you have got a viable business model. That is happening now. Find the most efficient and most effective way of leveraging these brands, which we all believe are two of the best brands in the world. That is exactly what we are doing.
You have a new executive team, new capital structure. Are there lessons learned from the earlier company that this management is kind of taking to heart?
Look, we're turnaround specialists. And so when you think you've seen it all, you take on a project like this and you realize you really haven't. And so the answer to your question, we've all learned lessons. And whilst I can't speak for the previous management, I think bloating has got to be one of the objectives and one of the downfalls that we need to make sure that we don't fall into. There's a way of running this company efficiently. There's a way of running this company and leveraging the brands and maximizing shareholder value very quickly. But you don't need to be spending fortunes on head office expenses, big teams that, frankly, we just don't require in an aggressive buy-and-build strategy. As I say, we have a pipeline of acquisitions that we are looking forward to announce over the next 12 months and 24 months.
Most of those businesses, with the exception of tech businesses, but even those will, of course, start holding their own and generating cash in time. Most of the businesses that we're looking at complement the brands beautifully, enhance the business, and generate cash. It is a bolt-on strategy as opposed to trying to force a strategy by bloating the company. That is one of the main lessons that I think that we've all learned and will ensure that that doesn't happen.
I know we have about 60 seconds, so I'm going to squeeze in another quick question. The stock has been bouncing around quite a bit with some pretty significant swings. Do you have any thoughts on the activity?
I think, yeah, sure. The volumes are high, which means that we're doing our jobs right. The brands are getting out there. Finally, after two years, eyeballs are back on Lottery.com and Sports.com. That's all I can ask for.
Terrific. With that, that concludes our presentation. I want to thank you for your participation and wish you all the best.
Thank you, Mark. I've really enjoyed it.
Thank you, Matt.