Lottery.com Inc. Announces Ad-Supported Model to Diversify Sports.com Revenue Stream

Rhea-AI Summary

Lottery.com (Nasdaq: LTRY) has announced the completion of platform updates to support advertising formats on Sports.com. The initiative aims to leverage the premium sports domain for advertising and sponsorship opportunities, targeting high-value sports consumers.

The platform will feature brand logos, marketing messages, and call-to-action campaigns across multiple advertising placements on the website and app. Following successful streaming of two professional boxing matches in 2024, Sports.com plans to integrate live event coverage in select markets.

Key statistics show that sports fans spend an average of 3.2 hours weekly watching sports content, with 55% of live sports viewership occurring on digital platforms in 2024, projected to reach 63% by 2027. The global sports industry generates over $100 billion annually in advertising and sponsorship revenue, presenting a significant opportunity for Sports.com to establish a new revenue stream within the Lottery.com portfolio.

Positive

• New revenue stream through advertising and sponsorship model
• Access to $100B+ global sports advertising market
• Strong domain asset with Sports.com
• Successful streaming of two boxing matches in 2024
• Potential expansion into UK football club acquisition

Negative

• Company facing ongoing SEC compliance issues
• Nasdaq listing compliance challenges
• Going concern issues mentioned in risk factors
• Internal accounting controls under review

Insights

Financial Analyst

Lottery.com's move to implement an ad-supported model for Sports.com represents a strategic diversification of revenue streams, though the immediate financial impact remains uncertain. The company is targeting the $100+ billion global sports advertising market, which could provide meaningful revenue potential for a company with a market cap of just $15.3 million.

The lack of specific revenue projections or announced advertising partnerships limits our ability to quantify the near-term financial impact. However, the strategic rationale is sound - leveraging an existing digital asset (the Sports.com domain) to capture advertising dollars in a growing digital sports consumption market.

This move appears designed to reduce reliance on the company's core lottery business and create a more diversified revenue model. Their mention of successful boxing match broadcasts in 2024 suggests they've begun testing content capabilities, though building substantial audience reach will be critical for attracting premium advertisers.

The vague reference to a "potential future UK football club acquisition" indicates broader ambitions but introduces execution risk and potential capital requirements. For a company of Lottery.com's size, such an acquisition would likely require significant financing.

While this announcement shows management is pursuing growth initiatives, investors should monitor for concrete progress metrics such as user growth, advertiser partnerships, and contribution to revenue in upcoming financial reports.

Digital Media Strategist

Sports.com represents a potentially valuable digital property for Lottery.com's advertising ambitions, though significant execution challenges lie ahead. The domain name itself carries inherent brand value and search traffic potential in the sports vertical, providing a foundation for their advertising strategy.

The company's timing aligns with documented shifts in consumer behavior. The cited research showing 55% of sports viewership occurring on digital platforms (expected to reach 63% by 2027) validates their digital-first approach. Sports content consumers, particularly in attractive demographics, have demonstrated willingness to engage with advertising when integrated appropriately.

However, building a competitive sports media platform requires more than just domain equity. Content development, user acquisition, and technology infrastructure demands significant investment. The mention of live event coverage suggests awareness of this need, but the company will face established competitors with deeper content libraries and larger audiences.

The ad tech stack implementation they're completing is just the first step - developing direct sales capabilities and programmatic advertising partnerships will be essential for monetization. The company's ability to attract premium brands mentioned (automotive, health &fitness, apparel) will depend on delivering audience scale and engagement metrics.

While the strategy shows promise, Lottery.com will need to demonstrate they can build meaningful user traffic and engagement to convert this domain asset into a substantial revenue generator within their portfolio.

FORT WORTH, Texas, March 05, 2025 (GLOBE NEWSWIRE) -- Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company in digital lottery and sports entertainment, has announced it is completing updates to its platform to support a variety of ad formats on Sports.com. This new revenue stream will leverage Sports.com, one of the world’s most coveted sports domains, as a vehicle for brands with premium advertising and sponsorship opportunities to reach a highly valuable audience of sports consumers.

Sports.com is recognized for its strong brand equity and credibility within the global sports industry. Through this initiative, brands will gain enhanced visibility by featuring logos, marketing messages, and call-to-action campaigns across multiple advertising placements on the Sports.com website and app. By utilizing strategic marketing partnerships and advanced programmatic advertising, Sports.com is poised to become a dominant force in the sports media sector—delivering substantial value to advertisers and tapping into a new revenue stream for the Company. The development and launch of an ad-funded revenue model across the Sports.com website and app could also dovetail with a potential future UK football club acquisition, its stadium and team uniform and apparel sponsorship, as a further branding opportunity for advertisers.

With its global reach, Sports.com provides brands in automotive, health & fitness, and apparel—sectors that naturally align with sports audiences with access to loyal sports content consumers. Advertisers in these industries have successfully partnered with major sports platforms such as ESPN, TNT Sports, beIN SPORTS, and DAZN. An October 2024 report released by Effectv, the sales division of Comcast Advertising, determined that sports fans spend an average of 3.2 hours a week watching sports content.

After the 2024 successful streaming broadcasts of two professional boxing matches, Sports.com plans to fully integrate live event coverage and broadcasts of sporting events in select markets. Consumers are continuing to shift their viewing preferences for live sports from traditional broadcast to digital. The September 2024 EMARKETER Forecast reported that 55% of live sports viewership was on a digital platform in 2024. That number is projected to grow to 63% by the end of 2027.

Matthew McGahan, Chairman and CEO of Lottery.com, commented:
“The advertising and sponsorship landscape presents revenue opportunities for Sports.com. Partner brands can benefit from premium ad placements on our platform, leveraging our strong brand equity while generating value for their businesses. Sports content is brand-safe, as demonstrated by other major platforms that have successfully monetized all forms of sports content.”

Mark Burcham, Director of Sports.com, added:
“With the expansion of Sports.com into sponsorships and advertising, we are creating a truly global destination for brands to reach high value consumers. Diehard sports fans have proven to be brand-loyal and less price sensitive which are attractive profiles for advertisers. This is an exciting time for Sports.com and we are committed to delivering value to both our partners and sports fans worldwide.”

The global sports industry generates more than $100 billion annually in advertising and sponsorship revenue. With its global reach, Sports.com is well-positioned to capitalize on this multi-billion-dollar market, creating a new and scalable revenue stream within the Lottery.com portfolio of brands.

For more information, please visit www.lottery.com or contact our media relations team.

Important Notice Regarding Forward-Looking Statements 

This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company’s strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this Form 8-K, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to, any future findings from ongoing review of the Company’s internal accounting controls, additional examination of the preliminary conclusions of such review, the Company’s ability to secure additional capital resources, the Company’s ability to continue as a going concern, the Company’s ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq, the Company’s ability to regain compliance with the Bid Price Requirement, the Company’s ability to regain compliance with Nasdaq Listing Rules, the Company’s ability to become current with its SEC reports, and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K/A filed by the Company with the SEC on June 14, 2024, and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

This press release was published by a CLEAR® Verified individual.

FAQ

What new revenue model is Lottery.com (LTRY) implementing for Sports.com?

Lottery.com is implementing an ad-supported model on Sports.com, featuring premium advertising placements, sponsorship opportunities, and brand partnerships across the website and app.

How much time do sports fans spend watching content according to the October 2024 Effectv report?

According to the October 2024 Effectv report, sports fans spend an average of 3.2 hours per week watching sports content.

What percentage of live sports viewership was digital in 2024 for LTRY's target market?

According to the EMARKETER Forecast, 55% of live sports viewership occurred on digital platforms in 2024, with projections reaching 63% by 2027.

What are Sports.com's plans for live event coverage after their 2024 boxing matches?

Following successful streaming of two professional boxing matches in 2024, Sports.com plans to fully integrate live event coverage and broadcasts of sporting events in select markets.