Lottery.com Completes Acquisition of S&MI Ltd, Rebranding as Sports.com Media Ltd (2024)

Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the“Company”), a leading online lottery services provider, announcesthe successful completion of its acquisition of S&MI Ltd.(“S&MI”), the innovative technology company behind theSports.com brand and app. The consideration for the acquisition,finalized on September 1, 2024, is all in common stock ofLottery.com valued at $3.00 per share.

The acquisition of S&MI marks a significant milestone forLottery.com, substantially enhancing the long-term value of theSports.com brand. This strategic move unlocks new growthopportunities in key markets, including the Middle East, NorthAfrica, and beyond, further solidifying Sports.com's global profileas a leader in digital sports entertainment.

Commercial Developments

In conjunction with the acquisition, Sports.com Media has madesignificant progress in expanding its global footprint. Incollaboration with PlanetSport, Sports.com has launched white-labelservices in Rwanda, Kenya, and Ethiopia. These initiatives bringSports.com content to a potential audience of over 100 millionsports viewers and fans across these regions. This expansion isbuilt upon the successful partnership between Sports.com andVodacom Soccer, where Sports.com is currently the exclusivefootball content provider.

Further extending its reach, Sports.com has partnered withCentili, a leading global payment company integrated with over 280telecommunications businesses worldwide. Through this partnership,Sports.com Media has launched services across all four majortelecommunication companies (Vodacom, MTN, Cell C & TelKom) inSouth Africa. This strategic alliance not only strengthensSports.com's presence in Africa but also paves the way for futuremarket entries worldwide, maximizing distribution and drivingmulti-market revenue potential through enhanced engagement andretention strategies.

Growth and Innovation

Sports.com will now focus on a series of initiatives scheduledfor 2024 and 2025. These include expanding into new streamingmarkets, covering a broader spectrum of sports, includingtraditional sports like soccer, as well as emerging arenas such asesports and sim racing. Fans can look forward to live streams ofhigh-octane events, exclusive behind-the-scenes content, andin-depth analyses across a variety of sports disciplines.

Majed Al Sorour, President of Sports.com andformerly CEO of Golf Saudi, Managing Director of LIV Golf, andBoard Member & Director of Newcastle United Football Club,said:

"This acquisition is not just a milestone for Sports.com,but a transformative step toward our vision of becoming the globalleader in digital sports entertainment. By integrating S&MI’stechnology, we are positioning ourselves to lead in innovation,expand our market presence, and deliver an unmatched experience tosports fans across the globe. Our focus is on creating a platformthat transcends traditional boundaries and redefines how the worldengages with sports."

Matthew McGahan, Chairman and CEO of Lottery.com andSports.com, added:

"The successful completion of this acquisition marks thebeginning of an exciting new chapter for both Lottery.com andSports.com. S&MI's advanced technology and innovative platformare a perfect fit for our growth strategy, and we are excited toleverage these assets to accelerate our global expansion. Thisacquisition strengthens our position in the industry and sets thestage for further growth and success as we expand our reach andofferings."

Tim Scoffham, Founding partner of S&MI Ltd(Sports.com Media), commented:

"Our recent partnerships with PlanetSport and Centili arekey components of our strategy to broaden our global footprint. Bylaunching in Rwanda, Kenya, and Ethiopia, and partnering with allmajor telcos in South Africa, we are unlocking significantopportunities to engage with millions of sports fans. Thesecollaborations will drive our global expansion, enabling us todeliver localized content and create new revenue streams in diversemarkets. We’re excited to build on these successes as we continueto expand Sports.com’s reach around the world."

Important Notice Regarding Forward-LookingStatements

This press release contains statements that constitute“forward-looking statements” within the meaning of Section 27A ofthe Securities Act of 1933, as amended (the “Securities Act”), andSection 21E of the Securities Exchange Act of 1934, as amended (the“Exchange Act”). All statements, other than statements of presentor historical fact included in this press release, regarding thecompany’s future financial performance, as well as the company’sstrategy, future operations, revenue guidance, projected costs,prospects, plans and objectives of management are forward-lookingstatements. When used in this press release, the words “could,”“should,” “will,” “may,” “believe,” “anticipate,” “intend,”“estimate,” “expect,” “project,” the negative of such terms andother similar expressions are intended to identify forward-lookingstatements, although not all forward-looking statements containsuch identifying words. These forward-looking statements are basedon management’s current expectations and assumptions about futureevents and are based on currently available information as to theoutcome and timing of future events. Except as otherwise requiredby applicable law, Lottery.com disclaims any duty to update anyforward-looking statements, all of which are expressly qualified bythe statements in this section, to reflect events or circumstancesafter the date of this press release. Lottery.com cautions you thatthese forward-looking statements are subject to numerous risks anduncertainties, most of which are difficult to predict and many ofwhich are beyond the control of Lottery.com. In addition,Lottery.com cautions you that the forward-looking statementscontained in this press release are subject to the followingfactors: (i) the outcome of any legal proceedings that may beinstituted against Lottery.com; (ii) Lottery.com’s ability tomaintain effective internal controls over financial reporting,including the remediation of identified material weaknesses ininternal control over financial reporting relating to segregationof duties with respect to, and access controls to, its financialrecord keeping system, and Lottery.com’s accounting staffinglevels; (iii) the effects of competition on Lottery.com’s futurebusiness; (iv) risks related to Lottery.com’s dependence on itsintellectual property and the risk that Lottery.com’s technologycould have undetected defects or errors; (v) changes in applicablelaws or regulations; (vi) risks related to the COVID-19 pandemicand its effect directly on Lottery.com and the economy generally;(vii) risks relating to privacy and data protection laws, privacyor data breaches, or the loss of data; (viii) the possibility thatLottery.com may be adversely affected by other economic, business,and/or competitive factors; (ix) the ability of Lottery.com toachieve its strategic and growth objectives as stated or at all;and (x) those factors discussed in the proxy statement/prospectusfiled by Lottery.com with the SEC under the heading “Risk Factors”and the other documents filed, or to be filed, by Lottery.com withthe SEC. Should one or more of the risks or uncertainties describedin this press release materialize or should underlying assumptionsprove incorrect, actual results and plans could differ materiallyfrom those expressed in any forward-looking statements. Additionalinformation concerning these and other factors that may impact theoperations and projections discussed herein can be found in thereports that Lottery.com has filed and will file from time to timewith the SEC. These SEC filings are available publicly on the SEC’swebsite atwww.sec.gov.

Lottery.com Contact: press@lottery.com