The operator of online and mobile lottery games platform Lottery.com, AutoLotto, announced today it entered into a definitive agreement to merge with the special purpose acquisition company (SPAC) Trident Acquisitions Corp and become publicly traded.
Leading Lottery Games and Data Provider
Besides offering popular lottery titles such as Powerball and Mega Millions and other state-licensed games of lottery accessible via desktop and mobile devices, Lottery.com is the largest provider of lottery data to digital newspapers and news websites, television, and other broadcasters, including some of the major names in digital publishing like Google, Verizon/Yahoo, and Amazon.
Lottery.com is seeking to capitalize on the huge potential of the $430 billion global lottery sales industry which currently has only 4% online penetration, and by leveraging its proven playbook, the brand is looking to become a global marketplace.
The lottery brand established its safe and secure mobile lottery platform and app, utilizing blockchain technology to keep track of users’ ledgers and allow them to play directly from their mobile phones. Lottery.com achieved an average of $30.90 of gross revenue per customer during its first year of operations, against an average acquisition cost of only $4.01.
“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.”Vadim Komissarov, CEO, Trident Acquisitions Corp
Founded in 2015, Lottery.com achieved a compounded annual growth rate of 322% for the period 2016-2020, and estimates gross revenue of around $71 million for 2021, $280 million for 2022, and $571 million for 2023.
“We believe this transaction will further enhance our ability to grow into new markets as consumers are now, more than ever, engaging with digital and online platforms.”Tony DiMatteo, Co-Founder and CEO, Lottery.com
Ambitious Plans for the Future
Currently operating in 11 US states and planning to enter into 23 other by the end of 2023, Lottery.com is also considering expansion opportunities into other countries, alongside efforts to affirm its position in current markets.
“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.”Vadim Komissarov, CEO, Trident Acquisitions Corp
The accelerated adoption of online and digital channels from the betting industry forced by changes in consumer behavior during lockdowns, paired with ease of restrictions on lottery games by states and governments seeking to increase tax revenues, offer opportunities for the boasting over 7.5 million visitors in 2020 Lottery.com platform for distributing games of chance across a range of national and international markets.
“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.”Tony DiMatteo, Co-Founder and CEO, Lottery.com
The proposed transaction involves 100% roll of equity from shareholders at Lottery.com, with no minimum cash requirements, and upon completion of the deal for the valued at approximately $526 million combined entity, it will retain the Lottery.com brand and remain listed on the NASDAQ under the new ticker symbol “LTRY”.
Net proceeds from the transaction will be directed towards Lottery.com’s working capital to support further platform expansion.