Lottery.com Inc rebrands amid SEC charges and management overhaul
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 18 2024
0mins
Should l Buy SEGG?
Source: Coinmarketcap
Lottery.com Inc (SEGG) saw a significant price increase of 32.59% as it crossed above its 5-day SMA, reflecting a notable market reaction.
The company announced its rebranding to Sports Entertainment Gaming Global Corporation, aiming to shift focus from lottery to a broader gaming portfolio. This strategic move comes amid SEC charges alleging fraudulent activities related to a SPAC merger, which has negatively impacted investor confidence, leading to a substantial decline in stock value over the past year. Despite these challenges, the management has undergone a complete overhaul to enhance governance and compliance, signaling a commitment to restoring trust and driving future growth.
The rebranding and management changes may help the company regain investor confidence, but the ongoing SEC issues pose significant risks that could affect its recovery trajectory.
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Analyst Views on SEGG
Wall Street analysts forecast SEGG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SEGG is 15.50 USD with a low forecast of 15.50 USD and a high forecast of 15.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.160
Low
15.50
Averages
15.50
High
15.50
Current: 1.160
Low
15.50
Averages
15.50
High
15.50
About SEGG
Lottery.com Inc., doing business as SEGG Media Corporation, is a global sport, entertainment, and gaming company operating digital assets such as Sports.com, Concerts.com, and Lottery.com. The Company's operating segments include Sports, Entertainment, and Gaming. Its Sports.com is a global sports streaming and content platform focused on delivering premium short-form video, curated articles, and eventually live event coverage. The platform combines mobile-first accessibility, AI-driven personalization, and community engagement to create a unified experience for fans worldwide. Its Entertainment includes two key platforms: TicketStub.com, a ticketing service; and Concerts.com. The Gaming segment operates a business-to-consumer (B2C) Platform via the Lottery.com application, business-to-business application programming interface (API), delivers global lottery data, and provides information about lotteries, including results, analysis, comparisons, tools, and regulatory context.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SEGG Media Appoints New EVP of Entertainment
- Executive Appointment: SEGG Media has appointed Simon Lewis as Executive Vice President of Entertainment and CEO of DotCom Ventures, aiming to advance the commercialization of Concerts.com and TicketStub.com, reflecting the company's focus on accelerating platform launches.
- Industry Experience: Lewis, previously President of Live Nation Europe, brings extensive experience in the live entertainment sector, and his addition is expected to enhance SEGG Media's strategic execution capabilities and strengthen its position in a competitive market.
- Strategic Development: As EVP of Entertainment, Lewis will oversee SEGG Media's live entertainment strategy and partnerships, driving the build-out and launch of Concerts.com and TicketStub.com to provide better ticketing and event experiences for users.
- Market Opportunities: Lewis emphasized a focus on diversified commercial opportunities with fans and artists, indicating the company's intent to leverage its platforms' potential to drive rapid growth in the live entertainment industry, surpassing traditional business models.
See More
SEGG Media Updates on Acquisition Strategy and Execution Plan
- Acquisition Progress: SEGG Media plans to complete the acquisition of a controlling interest in Veloce Esports in February, valuing the deal at $53 million, marking a pivotal step in the company's international expansion strategy and expected to enhance revenue-generating capabilities.
- Nook Acquisition: The acquisition of Nook Holdings is expected to close in March, with Nook providing professional support in the sports, fitness, and wellness sectors, further strengthening the company's operational portfolio and establishing a physical presence in the MENA region to support long-term growth strategies.
- Ant Media Transaction: SEGG Media has added the acquisition of controlling interest in Ant Media to its 90-day execution plan, projected to close by the end of Q1, which will see Sports.com Studios become the exclusive global streaming partner for the highly anticipated 'Special Forces Trilogy' series.
- Operational Improvements: The company will continue to implement a new accounting system to enhance financial controls, ensuring responsible integration of transactions and financial oversight of operations, aiming to restore credibility and create sustainable shareholder value.
See More
SEGG Media Wins Court Ruling on Legacy Litigation
- Litigation Ruling: The U.S. District Court for the Middle District of Florida dismissed the remaining claims in the legacy litigation related to Lottery.com, indicating a significant legal victory for the company that strengthens its operational foundation.
- Management Confidence: SEGG Media COO Gregory Potts expressed delight with the court's decision, viewing it as consistent with established jurisdictional principles, which showcases the new management team's effective handling of legal issues.
- Business Focus: The company will continue to concentrate on executing its business strategy and developing core assets like Sports.com and Concerts.com, aiming to drive revenue growth and create long-term shareholder value.
- Market Positioning: With this ruling, SEGG Media further clarifies its market positioning in the global sports, entertainment, and gaming sectors, committed to enhancing user experience through innovation and ethical gaming.
See More
SEGG Changes Name to Sports Entertainment Gaming Global Corporation Amid SEC Charges
- Name Change Context: SEGG announced its rebranding to Sports Entertainment Gaming Global Corporation, reflecting a strategic shift from a lottery-focused business to a broader portfolio in sports, entertainment, and gaming, aimed at enhancing brand image and driving long-term value creation.
- SEC Charges: On January 22, the SEC charged Lottery.com and its former executives with fraudulent activities related to a SPAC merger, alleging false revenue transactions that inflated financials and misled investors, resulting in significant losses.
- Stock Reaction: Following the announcement, SEGG shares fell over 8%, indicating negative market sentiment towards the name change and SEC allegations, while the stock has lost nearly 90% of its value over the past year, reflecting severe investor confidence erosion.
- Management Overhaul: The company stated it has completely restructured its management team since mid-2022, implementing significant changes to its internal controls and governance framework to ensure SEC compliance, aiming to restore investor trust and drive future growth.
See More
SEGG Media Completes $1.7 Million Direct Offering to Fund Acquisitions
- Offering Completion: SEGG Media successfully completed a registered direct offering of 2,449,857 shares, raising approximately $1.7 million, which is intended for general working capital and acquisitions of profitable businesses, thereby enhancing cash flow and market competitiveness.
- Acquisition Plans Advancement: The company plans to utilize the proceeds to advance acquisitions of revenue-generating businesses like Veloce Media Group and Nook Holdings Ltd., aiming to enhance overall revenue and profitability through quality asset integration.
- Financing Arrangement Changes: SEGG Media has decided to terminate its financing agreement with Evergreen Capital Markets, having received $500,000, but expects this move will not materially impact current liquidity, reflecting prudent management of its capital structure.
- Loan Agreement Termination: The company has terminated a $150 million loan agreement with United Capital Investments London, which is expected to prevent significant dilution of existing shareholders, further solidifying the company's financial stability.
See More
Bank of America Reports Q4 Net Income of $7.6 Billion, Exceeding Expectations
- Earnings Highlight: Bank of America (BAC) reported a net income of $7.6 billion for Q4 FY2025, down from $6.8 billion a year ago, yet its EPS of 98 cents surpassed the analyst consensus estimate of 96 cents, indicating stable profitability amidst market fluctuations.
- Revenue Growth: The bank's revenue net of interest expense increased by 7% year-over-year to $28.532 billion, exceeding the analyst consensus estimate of $27.944 billion, reflecting strong performance and effective cost management in a competitive landscape.
- Market Dynamics: While U.S. stocks traded lower overall, with the Nasdaq Composite falling over 100 points, energy stocks rose by 0.9%, indicating a divergence in market performance that may present investors with opportunities to reassess their portfolios.
- Economic Indicators: U.S. retail sales increased by 0.6% month-over-month in November, marking the largest surge since July, suggesting a rebound in consumer spending that could positively impact future economic growth.
See More
SEGG Media Appoints New EVP of Entertainment
- Executive Appointment: SEGG Media has appointed Simon Lewis as Executive Vice President of Entertainment and CEO of DotCom Ventures, aiming to advance the commercialization of Concerts.com and TicketStub.com, reflecting the company's focus on accelerating platform launches.
- Industry Experience: Lewis, previously President of Live Nation Europe, brings extensive experience in the live entertainment sector, and his addition is expected to enhance SEGG Media's strategic execution capabilities and strengthen its position in a competitive market.
- Strategic Development: As EVP of Entertainment, Lewis will oversee SEGG Media's live entertainment strategy and partnerships, driving the build-out and launch of Concerts.com and TicketStub.com to provide better ticketing and event experiences for users.
- Market Opportunities: Lewis emphasized a focus on diversified commercial opportunities with fans and artists, indicating the company's intent to leverage its platforms' potential to drive rapid growth in the live entertainment industry, surpassing traditional business models.
See More
SEGG Media Updates on Acquisition Strategy and Execution Plan
- Acquisition Progress: SEGG Media plans to complete the acquisition of a controlling interest in Veloce Esports in February, valuing the deal at $53 million, marking a pivotal step in the company's international expansion strategy and expected to enhance revenue-generating capabilities.
- Nook Acquisition: The acquisition of Nook Holdings is expected to close in March, with Nook providing professional support in the sports, fitness, and wellness sectors, further strengthening the company's operational portfolio and establishing a physical presence in the MENA region to support long-term growth strategies.
- Ant Media Transaction: SEGG Media has added the acquisition of controlling interest in Ant Media to its 90-day execution plan, projected to close by the end of Q1, which will see Sports.com Studios become the exclusive global streaming partner for the highly anticipated 'Special Forces Trilogy' series.
- Operational Improvements: The company will continue to implement a new accounting system to enhance financial controls, ensuring responsible integration of transactions and financial oversight of operations, aiming to restore credibility and create sustainable shareholder value.
See More
SEGG Media Wins Court Ruling on Legacy Litigation
- Litigation Ruling: The U.S. District Court for the Middle District of Florida dismissed the remaining claims in the legacy litigation related to Lottery.com, indicating a significant legal victory for the company that strengthens its operational foundation.
- Management Confidence: SEGG Media COO Gregory Potts expressed delight with the court's decision, viewing it as consistent with established jurisdictional principles, which showcases the new management team's effective handling of legal issues.
- Business Focus: The company will continue to concentrate on executing its business strategy and developing core assets like Sports.com and Concerts.com, aiming to drive revenue growth and create long-term shareholder value.
- Market Positioning: With this ruling, SEGG Media further clarifies its market positioning in the global sports, entertainment, and gaming sectors, committed to enhancing user experience through innovation and ethical gaming.
See More
SEGG Changes Name to Sports Entertainment Gaming Global Corporation Amid SEC Charges
- Name Change Context: SEGG announced its rebranding to Sports Entertainment Gaming Global Corporation, reflecting a strategic shift from a lottery-focused business to a broader portfolio in sports, entertainment, and gaming, aimed at enhancing brand image and driving long-term value creation.
- SEC Charges: On January 22, the SEC charged Lottery.com and its former executives with fraudulent activities related to a SPAC merger, alleging false revenue transactions that inflated financials and misled investors, resulting in significant losses.
- Stock Reaction: Following the announcement, SEGG shares fell over 8%, indicating negative market sentiment towards the name change and SEC allegations, while the stock has lost nearly 90% of its value over the past year, reflecting severe investor confidence erosion.
- Management Overhaul: The company stated it has completely restructured its management team since mid-2022, implementing significant changes to its internal controls and governance framework to ensure SEC compliance, aiming to restore investor trust and drive future growth.
See More
SEGG Media Completes $1.7 Million Direct Offering to Fund Acquisitions
- Offering Completion: SEGG Media successfully completed a registered direct offering of 2,449,857 shares, raising approximately $1.7 million, which is intended for general working capital and acquisitions of profitable businesses, thereby enhancing cash flow and market competitiveness.
- Acquisition Plans Advancement: The company plans to utilize the proceeds to advance acquisitions of revenue-generating businesses like Veloce Media Group and Nook Holdings Ltd., aiming to enhance overall revenue and profitability through quality asset integration.
- Financing Arrangement Changes: SEGG Media has decided to terminate its financing agreement with Evergreen Capital Markets, having received $500,000, but expects this move will not materially impact current liquidity, reflecting prudent management of its capital structure.
- Loan Agreement Termination: The company has terminated a $150 million loan agreement with United Capital Investments London, which is expected to prevent significant dilution of existing shareholders, further solidifying the company's financial stability.
See More
Bank of America Reports Q4 Net Income of $7.6 Billion, Exceeding Expectations
- Earnings Highlight: Bank of America (BAC) reported a net income of $7.6 billion for Q4 FY2025, down from $6.8 billion a year ago, yet its EPS of 98 cents surpassed the analyst consensus estimate of 96 cents, indicating stable profitability amidst market fluctuations.
- Revenue Growth: The bank's revenue net of interest expense increased by 7% year-over-year to $28.532 billion, exceeding the analyst consensus estimate of $27.944 billion, reflecting strong performance and effective cost management in a competitive landscape.
- Market Dynamics: While U.S. stocks traded lower overall, with the Nasdaq Composite falling over 100 points, energy stocks rose by 0.9%, indicating a divergence in market performance that may present investors with opportunities to reassess their portfolios.
- Economic Indicators: U.S. retail sales increased by 0.6% month-over-month in November, marking the largest surge since July, suggesting a rebound in consumer spending that could positively impact future economic growth.
See More
