All news

Lottery.com rebrands while facing SEC fraud allegations

Could Lottery.com rise from the ashes after alleged fraud?

The United States Securities and Exchange Commission building in Washington, DC.
Halley Bondy
Add lotteryusa.com as a preferred source on Google

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.

Comments

0
Loading comments

Related articles

Arkansas Scholarship Lottery Executive Director Sharon Strong.
Featured
What happens after someone wins $1.8 billion?

Arkansas Scholarship Lottery Executive Director Sharon Strong explains the high-stakes reality of running a state lottery.

Alex Cramer profile pic

Alex Cramer

A Michigan Lottery Lotto 47 ticket on top of other lottery tickets.
Featured
The math behind Lotto 47

Michigan's Lotto 47 has more layers than its $1 price tag suggests. Here's what the numbers reveal.

Dr. Catalin Barboianu profile pic

Dr. Catalin Barboianu

The Connecticut Lottery logo over a white background.
Connecticut uses lottery equipment for tax reform panel

How a lottery ball could reshape Connecticut's property taxes.

Samantha Herscher profile pic

Samantha Herscher

A picture of police cars with their lights on.
Three lottery crimes, three states, one warning for players

From stolen scratch-offs to a $15,000 scam, recent cases show how lottery schemes take many forms.

Todd Betzold profile pic

Todd Betzold

Recent articles

View All
Arkansas Scholarship Lottery Executive Director Sharon Strong.
Featured
What happens after someone wins $1.8 billion?

Arkansas Scholarship Lottery Executive Director Sharon Strong explains the high-stakes reality of running a state lottery.

Alex Cramer profile pic

Alex Cramer

A Michigan Lottery Lotto 47 ticket on top of other lottery tickets.
Featured
The math behind Lotto 47

Michigan's Lotto 47 has more layers than its $1 price tag suggests. Here's what the numbers reveal.

Dr. Catalin Barboianu profile pic

Dr. Catalin Barboianu

The Millionaire for Life logo over a background with golden sparks.
Big September change coming to Millionaire for Life prizes

These new rules would make the game's $100,000-a-year prize much harder to keep as a lifetime annuity.

Todd Betzold profile pic

Todd Betzold

The Massachusetts Lottery Megabucks logo over a yellow background with shooting stars.
How high can it go? Megabucks crosses the $20M mark

The game has gone over a year without a jackpot winner, fueling a historic run to the third-largest jackpot.

Todd Betzold profile pic

Todd Betzold