The lottery business is huge. The current jackpots for Powerball and Mega Millions are $730 million and $850 million respectively. The combined total puts more than $1.5 billion up for grabs.
But with the pandemic raging, people want to gamble from the comfort of their own homes, not stand in line at busy gas stations.
In 2020, Wall Street demonstrated a strong appetite for gambling stocks.
The sports betting powerhouse DraftKings Inc. (NASDAQ: DKNG) went public through a SPAC merger. Its share price soared 275% from $17 to $64.
Everi Holdings Inc. (NYSE: EVRI), which provides financial and gaming services to many Las Vegas casinos, climbed from $1.65 to over $14 — a 750% increase.
Lottery.com was bringing lottery tickets online before the pandemic started. With a deal fast approaching, here are 12 things you need to know about Lottery.com and the pending SPAC deal.
- Trident Acquisitions Corp. (NASDAQ: TDAC) and Lottery.com have signed a binding letter of intent to merge.
- Founded in 2015, Lottery.com is the leading mobile lottery platform.
- It’s the largest lottery data provider in the world, providing data to Google, Verizon, Yahoo!, and Amazon.
- Expanding rapidly. Currently over 600 games, in 20 states, and 148 countries. More states could join soon. States are starved for revenue since the pandemic reduced gas and payroll taxes.
- Based in Austin, Texas. This expanding tech hub has a growing talent pool.
- A cutting-edge blockchain ledger is in development to provide secure transactions.
- Average annual revenue growth of 280% from 2016–2019.
- Strong focus on compliance and relationship building with states.
- Annual lottery sales are $80 billion in the U.S. and top $500 billion internationally.
- The advisory board includes Jason Robins, CEO of DraftKings.
- Trident will be penalized if the share price falls below $11.40.
- The deal is scheduled to close in Quarter 1, 2021.
SPACs, or special purpose acquisition companies, raised a combined $84 billion in 2020.
Here’s how the process works…
The SPAC sells shares in order to raise cash, but there’s no underlying business. The cash raised is deposited into escrow while the SPAC seeks out a company to merge with or buy.
Once a preliminary deal is reached, the shareholders get the final say. After the deal is approved, the newly formed company is assigned a new ticker and begins trading like any other stock.
If no deal is reached or if the deal is rejected, shareholders typically get a refund at the IPO price plus interest.
SPACs offer investors a unique opportunity to get in early on some exciting companies. DraftKings, Virgin Galactic Holdings, Inc. (NYSE: SPCE), and Opendoor Technologies Inc. (NASDAQ: OPEN) all went public through SPACs.
Posts contain affiliate links. Timothysykes.com may get compensated for affiliate posts and purchases through links.
The post Lottery Fever Grows Jackpots to $1.5 Billion. 12 Things to Know About The Lottery.com SPAC appeared first on Timothy Sykes.