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Facing fraud allegations tied to past leadership, Lottery.com's parent company SEGG Media announced a rebrand that includes a new name and corporate identity.
What is Lottery.com?
Lottery.com is a courier site and media brand launched in 2015. In some states, lottery players can purchase tickets through the app. Lottery.com has served as a third-party vendor, buying tickets for games like Powerball from retailers on behalf of the player. It is still operational.
A new name
On January 27, a filing was submitted to the Delaware Division of Corporations, changing the company name to Sports Entertainment Gaming Global Corporation. Lottery.com remains an asset of the brand, along with Sports.com, Concerts.com, and TicketStub.com.
According to Marc Bircham, Chairman of the SEGG Media Board of Directors, the name change is a strategic pivot:
This name change reflects the Company's mission moving forward. Sports Entertainment Gaming Global Corporation more accurately represents the businesses we are building, the sectors we are focused on, and the markets that drive the Company's growth. Our emphasis remains on disciplined execution, strengthening our brand portfolio, and creating sustainable, long-term value.
Final approval of the name change is still pending in Delaware.
Serious fraud allegations
The rebrand comes in the wake of serious allegations against former brand executives. In 2023, senior executives could be seen on a chartered yacht at the Monaco Grand Prix, raging with A-listers. But the party didn't last long.
On January 22, the Securities and Exchange Commission filed a civil action against Lottery.com and against Anthony DiMatteo, former CEO, and former executives Matthew Clemenson and Ryan Dickinson.
The saga started around 2021, when the company was slated to go public on NASDAQ and merge with Trident Acquisitions Corp., a New York-based acquisitions company. The SEC suit alleges that Trident's then-CEO Vadim Komissarov conspired with the Lottery.com executives to inflate the site's revenue.
The suit says Trident needed to merge with a private company quickly to avoid returning over $60 million to investors. Komissarov himself would have lost millions, too, according to the suit. To slip through SEC filing regulations, the conspirators allegedly over-inflated Lottery.com's revenue by 300% for 2021, and by 800% in the first quarter of 2022. The SEC also alleges that Komissarov conducted a fake $9 million transaction, two fake sales worth over $35 million, and more fraudulent transactions in order to doctor the numbers.
Addressing the elephant in the room
SEGG addressed the allegations in a statement, saying the ex-executives “are no longer employed by, nor affiliated with, the company in any capacity.”
The statement continued:
Since mid-2022, the Company has completely cleaned house, implemented substantial changes to its management team, governance framework, internal control environment, and have become fully compliant with the SEC.
A different company face
SEGG is hoping for a brighter future, saying the company has gained 3,600 shareholders in the last 30 days, which is an increase of 68%. In a statement, SEGG said it would expand consumer offerings to include more sports, entertainment, and gaming.
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