{"id":223874,"date":"2022-07-29T16:21:45","date_gmt":"2022-07-29T21:21:45","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=223874"},"modified":"2022-07-29T16:55:05","modified_gmt":"2022-07-29T21:55:05","slug":"lottery-com-may-not-have-cash-to-survive-12-months","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/","title":{"rendered":"Lottery.com on Brink of Collapse After Raising Going Concern Doubt"},"content":{"rendered":"<p>On a strong day for the broader market, Lottery.com (NASDAQ:LTRY) shed nearly two-thirds of its value. That&#8217;s after the gaming company revealed in a regulatory filing it doesn\u2019t have enough capital to survive a year.<\/p>\n<figure id=\"attachment_223875\" aria-describedby=\"caption-attachment-223875\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-223875\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM-142x80.jpg\" alt=\"Lottery.com\" width=\"1200\" height=\"675\" \/><figcaption  id=\"caption-attachment-223875\"class=\"text-description\">Mega Millions tickets. That jackpot is soaring, but Lottery.com is on the brink of collapse. (Image: <em>CNN<\/em>)<\/figcaption><\/figure>\n<p>Shares of the internet lottery provider slumped 63.79% today on volume that was roughly 40 times above the daily average. The Friday slump extends the stock\u2019s year-to-date slide to 87.21%. AutoLotto, which does business as Lottery.com, debuted as a standalone public company last November. That&#8217;s <a href=\"https:\/\/www.casino.org\/news\/lottery-com-spac-deal-closed-debuts-as-public-company-on-nov-1\/\">following a merger with<\/a> special purpose acquisition company (SPAC) Trident Acquisitions Corp.<\/p>\n<p>Prior to its debut as a public company, Lottery.com forecast a post-transaction enterprise value of $526 million, with $45 million in cash. Its market capitalization resides at $41.53 million following today\u2019s shellacking. As detailed in a Form 8-K filing with the Securities and Exchange Commission (SEC), the gaming company is in a precarious financial spot and is laying off staff to conserve cash.<\/p>\n<blockquote class=\"main-blockquote\"><p><strong>On July, 28, 2022, the Board of Directors of Lottery.com Inc. (the \u201cCompany\u201d) determined that the Company does not currently have sufficient financial resources to fund its operations or pay certain existing obligations, including its payroll and related obligations. Accordingly, the Company intends to furlough certain employees effective July 29, 2022,\u201d<\/strong> according to the filing.<\/p><\/blockquote>\n<p>Lottery.com acknowledges those staffers are owed $425,000 in outstanding pay and that if the company cannot compensate those workers, they could take legal action against the firm.<\/p>\n<h2>Lottery.com Could Be Dubious SPAC Collapse<\/h2>\n<p>Lottery.com\u2019s merger with Trident was announced at the height of SPAC fever. That was prior to <a href=\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/\">a stretch of significant retrenchment<\/a> for blank-check equities with merger partners across multiple industries, not just gaming.<\/p>\n<div class=\"callout\">\n<p>There was enthusiasm for the stock as it soared as high as $17.50 last November <a href=\"https:\/\/www.casino.org\/news\/lottery-com-spac-shares-soar-on-positive-sales-forecast\/\">amid a bullish revenue<\/a> forecast. At the time, the company was touting low customer acquisition costs and state-level expansion plans.<\/p>\n<\/div>\n<p>\u201cFrom 2016 to 2020, Lottery.com grew gross revenue at a compounded annual growth rate of 322%, and forecasts gross revenue equal to approximately $71 million in 2021, $280 million in 2022, and $571 million in 2023,\u201d according to the company.<\/p>\n<p>In other words, things weren\u2019t supposed to be this way. But the reality for Lottery.com is a stock that traded at $17.50 less than 10 months ago closed at 29 cents today, and its prospects for survival appear dubious.<\/p>\n<p><strong>\u201c<\/strong>Additionally, the Company\u2019s capital resources are not sufficient to fund its operations for a twelve-month period, and therefore, there is substantial doubt about the Company\u2019s ability to continue as a going concern. <strong>If the Company is not able to secure additional capital resources or otherwise fund its operations, the Company will be forced to wind down some or all of its operations and pursue options for liquidating the Company\u2019s assets, including equipment and intellectual property,\u201d <\/strong>according to the 8-K.<\/p>\n<h2>Interesting Timing<\/h2>\n<p>These should be halcyon days for companies operating in the lottery industry, including internet firms that offer customers convenience.<\/p>\n<p>On that note, it\u2019s perhaps a cruel twist of fate that Lottery.com\u2019s 8-K filing arrives on the day of <a href=\"https:\/\/www.casino.org\/news\/mega-millions-1-28b-jackpot-leading-hopeful-nevadans-to-buy-tickets\/\">a $1.28 billion Mega Millions draw<\/a> \u2013 one of the largest jackpots in US lottery history.<\/p>\n<p>Even after taxes, the winner of that pot could buy Lottery.com multiple times over.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On a strong day for the broader market, Lottery.com (NASDAQ:LTRY) shed nearly two-thirds of its value. That&#8217;s after the gaming company revealed in a regulatory filing it doesn\u2019t have enough capital to survive a year. Shares of the internet lottery provider slumped 63.79% today on volume that was roughly 40 times above the daily average. [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":223875,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,19,13699],"tags":[81903,81931,13701],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lottery.com May Not Have Cash To Survive 12 Months<\/title>\n<meta name=\"description\" content=\"Lottery.com says in SEC filing it may not have cash to survive another year.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lottery.com May Not Have Cash To Survive 12 Months\" \/>\n<meta property=\"og:description\" content=\"Lottery.com says in SEC filing it may not have cash to survive another year.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-29T21:21:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-29T21:55:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/\",\"url\":\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/\",\"name\":\"Lottery.com May Not Have Cash To Survive 12 Months\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM.jpg\",\"datePublished\":\"2022-07-29T21:21:45+00:00\",\"dateModified\":\"2022-07-29T21:55:05+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Lottery.com says in SEC filing it may not have cash to survive another year.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM.jpg\",\"width\":1600,\"height\":900,\"caption\":\"Mega Millions tickets. That jackpot is soaring, but Lottery.com is on the brink of collapse. (Image: CNN)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Lottery.com on Brink of Collapse After Raising Going Concern Doubt\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Lottery.com May Not Have Cash To Survive 12 Months","description":"Lottery.com says in SEC filing it may not have cash to survive another year.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/","og_locale":"en_US","og_type":"article","og_title":"Lottery.com May Not Have Cash To Survive 12 Months","og_description":"Lottery.com says in SEC filing it may not have cash to survive another year.","og_url":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-07-29T21:21:45+00:00","article_modified_time":"2022-07-29T21:55:05+00:00","og_image":[{"width":1600,"height":900,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/","url":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/","name":"Lottery.com May Not Have Cash To Survive 12 Months","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM.jpg","datePublished":"2022-07-29T21:21:45+00:00","dateModified":"2022-07-29T21:55:05+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Lottery.com says in SEC filing it may not have cash to survive another year.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/MM.jpg","width":1600,"height":900,"caption":"Mega Millions tickets. That jackpot is soaring, but Lottery.com is on the brink of collapse. (Image: CNN)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/lottery-com-may-not-have-cash-to-survive-12-months\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Lottery.com on Brink of Collapse After Raising Going Concern Doubt"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. 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