Lottery.com’s full-year revenue for the year ended December 31, 2022 was $6.7m ($5.3m/€6.1m/PS5.3m), a 58.6% decrease from its 2021 results.
It is far from the revenue growth of Lottery.com in 2021. That year, revenues were up 813.3% compared to Covid’s disastrous 2020.
Multiple management reshuffles, legal issues and other challenges had characterized the year for this operator. Lottery.com began a pattern of reorganizing its management in March.
It “terminated” the employment of Ryan Dickinson in July after it admitted to having overstated the cash balance it held by $30m. Lottery.com CEO Lawrence DiMatteo also resigned in July and stated the company owed $425,000 to employees in unpaid payroll obligations.
Lottery.com received a warning in August that it would be delisted from the US stock market Nasdaq after failing to file their Q2 report on time.
More employee problems arose in September. Two board members quit during the month after they claimed Lottery.com had not investigated “red flags”, which were allegedly raised a new Lottery.com shareholder.
The business received a 5-October deadline to fill the remaining positions. Sohail Quraeshi was appointed as the new CEO.
In October, the business hired new auditors.
Richard Kivel, the chair of Lottery.com, announced his resignation in November. He claimed that Lottery.com fostered an unfriendly working environment, and that Dennis Ruggeri, chief compliance officer, was under FBI investigation. Days later, a new chair was named.
Lottery.com was warned by Nasdaq in December for filing their quarterly results late – Q3 this time. Another Lottery.com Director left the company after just two months.
Financial results
Lottery.com reported revenue costs of $4.3m in the past year. This is a decrease of 47.1% from last year. The gross revenue for the year was $2.4m. This is a 70.0% drop from the previous year.
The total operating costs for this year were $58.2m. This is a 70.0% decrease from the previous year. The total operating expenses for the year were $58.2m, a 70.0% drop from last year.
Losses from operating activities for 2021 were $55.7m, a $25.9m increase.
The other expenses consisting of reserve losses of advertising credits, interest and other costs totaled $4.4m. The pre-tax losses amounted to $60.2m.
After income tax expenses of $104,356, total loss was $60.3m or 14.1% higher than 2021.
