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Lottery.com Edges Closer to Nasdaq Debut via a $526m Transaction
By Jeff Osienya Feb 25, 2021 IndustryLottery.com’s owner AutoLotto Inc has entered into a definitive agreement with blank check company trident Trident to use it as a vehicle for launching on New York’s Nasdaq Stock Exchange. The transaction is estimated to be worth half a billion dollars.AutoLotto Inc. which offers its online mobile lottery services via the Lottery.com domain name has reached a definitive agreement for a merger deal with the Trident Acquisition Group, a blank check company that will slingshot the lottery giant to trading on Nasdaq. The two parties first disclosed the plans for AutoLotto to acquire Trident, the New York-listed SPAC (Special Purpose Acquisition Company) back in November last year after they both signed a binding letter of intent.
Per the agreement, the merged entity will have an estimated enterprise value of about $526 million after completion of the business combination and will retain the Lottery.com brand name. Upon premiering on the Nasdaq, the combined entity will adopt “LTRY” as its new ticker symbol.
This transaction is expected to be completed by the end of Q1 2020, and the newly formed company will cross to the other side of Nasdaq with a stash of over $45 million in cash. The money will be used as a growth fund to furnish its expansion strategy in the coming years.
Going Hard on the Burgeoning Lottery Industry
With over five years in the business since its launch in 2015, Lottery.com is seeking public listing the SPAC way, a move that a lot of gaming companies have recently made to sidestep the troubles of going public by following the more tedious traditional IPO path. Last December, Skillz Inc even became the first eSports mobile gaming company to trade publicly after merging with a SPAC.
By establishing itself as the champion of safe and secure mobile lottery gaming through blockchain technology, the company managed to win an average gross revenue of $30.90 per customer within its first full year of operation. Mind you, the average acquisition cost per customer over the same period was only about $4.
Through public listing, Lottery.com now wants to leverage its proven strategy in the global lottery sales marketplace which is currently worth $430 billion. Given that only 4% of the clientele in the global lottery industry accesses lottery services online, the lottery guru wants to fill that gap by channeling more players to the online markets.
Vadim Komissarov, the Chief Executive Officer of Trident had this to say after the definitive agreement between his company and AutoLotto was announced;
Quote“Lottery.com’s innovative platform has already made significant progress bringing the lottery industry into the digital age and continuing to expand its markets both domestically and internationally. With a track record of substantial growth and user base expansion in a relatively short period of time, we are confident that Lottery.com has the ability to cement its place as a leading online platform to both play the lottery and to introduce additional wagering and games of chance worldwide.
We believe this transaction will allow Lottery.com to be on a path to reach its true growth potential, and we look forward to working with the team as we introduce their compelling story to the public markets.”
A Bold Growth Strategy that Has Potential to Pay-Off Big Time
The Covid-19 pandemic last year transformed the gaming industry by driving players to online platforms particularly because of gaming property shutdowns and jurisdictional lockdowns.
Economies were adversely affected by the pandemic as well and states had to move quickly to introduced new sources of revenue to cushion their budget deficit. A lot of states in the USA for instance considered gaming for the first time and warmed up to regulated lotteries in a bid to collect more tax revenues for their coffers.
Through such shifts, Lottery.com won big, serving over 7.5 million players in the USA and across the globe by the end of the 2020 calendar year. 2020 aside, Lottery.com has been on a winning streak over the past five years. From 2016 to 2020, the lotto bigwig achieved a mind-blowing triple-digit compounded annual growth rate of 322%. With such a robust growth rate, Lottery.com projects a gross revenue of $71 million, $280 million, and $271 million for 2021, 2022, and 2023 calendar years respectively.
With a strong presence in 11 states across the USA, the company plans to launch into 23 more states in the country and spread its wings across different global markets as well. This move will further reinforce Lottery.com’s position as a lottery services market leader as the company lays plans behind the scenes to venture into other online gambling verticals.
Tony DiMatteo, the co-founder and CEO of Lottery.com, voiced his company’s vision and ambition in the following statement after the pair announced their definitive agreement:
Quote“Lottery.com is innovating a legacy industry with ground-breaking technologies poised to capitalise on the large population of active internet and smartphone users in the US and throughout the world. Over the past several months, we have made significant progress, launching our app in the Google Play Store and expanding domestically into Colorado and internationally through announced partnership plans in Turkey and Ukraine.
...consumers are now, more than ever, engaging with digital and online platforms. The team at Trident shares our vision of growing into a global marketplace for legally available lottery games, and other games of chance, to consumers across the world and we firmly believe this partnership will accelerate our growth.”
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