Lottery.com Rebrands As Sports Entertainment Gaming Global Amid SEC Fraud Charges Against Former Executives

• The sports company said it will operate under the names SEGG Media Corp, SEGG Media, and SEGG, with the name change being effective immediately after its filing is accepted.
• According to the company, the name change reflects its movement from a lottery-focused business to a broader portfolio of assets across sports, entertainment, and gaming-related verticals. 
• Meanwhile, on Jan. 22, the SEC charged Lottery.com, its former CEO, and two former executives, alleging a fraudulent scheme tied to a SPAC merger.

Lottery.com Inc. (SEGG) announced on Tuesday that it has filed an application with the Delaware Division of Corporations to officially change its corporate name to Sports Entertainment Gaming Global Corporation.

The sports company said in a statement that it will operate under the names SEGG Media Corp, SEGG Media, and SEGG, with the name change being effective immediately after its filing is accepted, while noting that processing times may be impacted by Winter Storm Fern.

The name change comes amid charges from the U.S. Securities and Exchange Commission (SEC) against the company, its former CEO, two executives, and the CEO of Trident Acquisitions, alleging fraudulent statements related to a SPAC merger.

Shares of SEGG fell over 8% on Tuesday at the time of writing.

Rebranding Rationale

According to the company, its move to change its corporate name reflects its movement from its lottery-focused business to a broader portfolio of assets across sports, entertainment, and gaming-related verticals.

“This name change reflects the Company’s mission moving forward. Sports Entertainment Gaming Global Corporation more accurately represents the businesses we are building, the sectors we are focused on and the and the markets that drive the Company's growth,” said Marc Bircham, Chairman of the SEGG Media Board of Directors.

“Our emphasis remains on disciplined execution, strengthening our brand portfolio, and creating sustainable, long-term value,” he added.

SEC Charges

On Jan. 22, the SEC charged Lottery.com, its former CEO Lawrence DiMatteo, former executives Matthew Clemenson and Ryan Dickinson, and Trident Acquisitions CEO Vadim Komissarov, alleging a fraudulent scheme tied to a SPAC merger.

The SEC claims the defendants planned and executed multiple false revenue transactions, including a $9 million data sale and more than $65 million in fake advertising and other sales, which inflated Lottery.com’s financials and misled investors, causing significant losses.

Meanwhile, the company said it has cooperated with the investigation and reiterated that its current leadership was not involved in the misconduct alleged by the SEC.

“Since mid-2022, the Company has completely cleaned house, implemented substantial changes to its management team, governance framework, internal control environment and have become fully compliant with the SEC, as evidenced by the recent approval and effectiveness of its Form S-3,” the company said in a statement.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around SEGG stock was in ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.

One user speculated the name change could be due to the ongoing investigation against its former CEO in a bid to avoid any association.

SEGG shares have lost nearly 90% of their value in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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