SEC charges Lottery.com fraud
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The U.S. Securities and Exchange Commission (SEC) has filed civil fraud charges against Lottery.com, a digital platform for purchasing lottery tickets, and three former executives. The regulator alleges the company and its leadership deliberately overstated revenues by hundreds of percent during 2021 and early 2022 to facilitate a merger and public listing.
The action underscores growing scrutiny of online lottery operators amid rapid digital expansion in the sector. Accurate financial reporting remains essential for investor confidence and regulatory compliance in an industry increasingly reliant on technology platforms.
Key Takeaways
- Alleged revenue inflation reached 300% for full-year 2021 and 800% in Q1 2022 through fictitious transactions, including fake sales exceeding $44 million.
- The scheme purportedly involved former CEO Lawrence Anthony Di Matteo, along with executives Matthew Clemenson and Ryan Dickinson, conspiring with an acquisition firm’s leadership to mislead regulators and investors.
- Lottery.com has since rebranded under its parent SEGG Media while facing the ongoing SEC litigation.
The SEC complaint details how the defendants allegedly fabricated revenue figures to meet thresholds for a reverse merger with Trident Acquisitions Corp. Tactics included recording nonexistent sales and inflating transaction values, actions that violated federal securities laws. No criminal charges have been announced, but the civil suit seeks disgorgement, penalties, and injunctions against future violations.
This enforcement highlights vulnerabilities in the emerging digital lottery space, where platforms bridge traditional state-regulated games and online access. While Lottery.com operates as an intermediary rather than a primary operator, the case may prompt closer examination of third-party vendors by state lotteries and regulators. Industry observers note that transparent operations are critical as more jurisdictions explore or expand online ticket sales.
The development arrives as digital channels continue gaining traction, with several U.S. lotteries partnering with technology providers for e-commerce capabilities. Regulatory actions like this reinforce the need for robust internal controls and accurate disclosures in lottery-adjacent businesses.
Sources
- SEC official complaint: sec.gov/files/litigation/complaints/2026/comp26464.pdf
