Company: LTRYW
Filing Date: 2025-04-25
Form Type: S-1/A
Source: 0001641172-25-006093
Chunk: 152

Company: Lottery.com Inc.
Filing Date: 2025-04-25
Form: S-1/A
Chunk 152
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 acquisition candidates operate in jurisdictions with sizable TAM, and we believe they will favorably view the opportunity to execute a business combination with us due to factors that include our definitional brand name, growing domestic and international presence, and technological offerings.

As indicated elsewhere in this prospectus, we are focusing on a “buy and build” strategy for Sports.com which is selected by our board and agreed to by outside investors. Two acquisitions have already been initiated under this strategy. The first, Nook Holdings Limited, will give us a presence in the lucrative Middle Eastern market and introduces the Sports.com brand to more than 100 sports, health, and wellness-focused small businesses. We initiated our second acquisition in early 2024 with SM&I, LTD. Their SportLocker platform has been rebranded to Sports.com and contains more than 100,000 unique content elements and an integrated live content streaming platform. We expect to close both of these acquisitions in July.

Introducing New Revenue Generating Lottery and Sweepstakes Products

We believe our ability to retain existing and attract new users, affiliates, partners, and data subscribers, and to expand our operations in existing and new jurisdictions depends, in part, on our continued ability to create new revenue generating products, such as offering a fee-based subscription service of exclusive products, providing the opportunity to acquire fractional shares of lottery games, and launching our own, proprietary lottery game products.

For example, we anticipate that users of our B2C Platform will support a fee-based subscription service that offers subscribers access to participate in exclusive lottery game pools, premium lottery prediction data, and other select features and functionality for a fixed monthly price.

We believe that offering users a fractional share product will be a significant revenue generating opportunity for the Company in many international jurisdictions in which users have less disposable income as compared to users within the U.S. Unlike a lottery pool, which is generally a familiar concept and in which multiple lottery game tickets are acquired to provide the opportunity and the winnings of all such tickets are shared by the pool participants, fractional share participants provide for multiple participants to participate in a lottery game by purchasing a share — or fraction — of one ticket at a propionate fraction of the price and participating in, a proportionate fraction of any prize. This provides an opportunity for those who may not want to expend the full purchase price of a lottery game to participate at less expense. Given the lower up-front cost and lower risk of loss, we expect that this will attract additional users who may not wish to commit the discretionary income to acquire a single lottery game