Tony McGahan has ascended to the role of Chief Executive Officer at Lottery.com after serving pro tem since July 2023, marking a pivotal moment for the company following a year of executive shuffles. McGahan’s appointment comes on the heels of Mark Gustavson’s unexpected exit, who had held the CEO position since February of the same year.
Previously, Tony McGahan had been appointed chair of Lottery.com in October last year, succeeding Sohail Quraeshi’s brief tenure as interim CEO. Gustavson then replaced Quraeshi before McGahan eventually stepped in. McGahan, whose career boasts a philanthropic and entrepreneurial flair, is the founder of the UK charity Mask Our Heroes, which he created in response to the Covid-19 pandemic to aid in the distribution of personal protective equipment in the UK. Prior to his charitable endeavors, he successfully established and later sold the Harley-Davidson dealership, Magic Automotive Group.
“I’m honoured and excited for the trust placed in me to navigate Lottery.com’s future,” stated McGahan, expressing both his gratitude and eagerness to propel the company forward in a rapidly evolving industry.
Complementing the executive renewal, Gregory Potts has been promoted from within, stepping into the role of Chief Operating Officer. Potts, who previously prospered as the global vice-president of affiliate success at Lottery.com, brings significant experience to the table, having held senior roles in reputable companies such as Valassis, LockNet, Kwikee, and MultiAd.
The reshuffling of Lottery.com’s leadership deck also includes Robert Stubblefield’s confirmation as Chief Financial Officer by the board, following his appointment in July. His confirmed role represents a crucial element in stabilizing the company’s financial strategies moving forward.
“Our innovative approach, backed by our stakeholders and leadership team, promises to transform the lottery industry and also maximize our investments in the Sports.com domain and Nexus Gaming System,” McGahan affirmed, highlighting the strategic direction under the new leadership.
This leadership reformation follows Lottery.com’s recently released Q3 results, which shed light on the company’s financial status. Revenue plummeted by nearly 60% to $285,523, casting a concerning shadow over the organization’s performance. Despite this downturn, the report showed silver linings with a 73.4% reduction in the cost of revenue and a 47.7% decrease in operating expenses. While dodging tax liabilities, the company faced a $34,256 negative impact from foreign currency translation but counterbalanced it with $72,277 income from non-controlling interests. Eventually, the net loss for the quarter amounted to $3.4 million, marking an improvement compared to the previous year’s $6.0 million.
In the midst of financial recalibration, Lottery.com also underwent several management changes and encountered compliance challenges. In May, the company disclosed a “material weakness” in accounting, stemming from a class-action lawsuit filed in August 2022. This lawsuit, filed on behalf of investors and ex-senior employees, accused Lottery.com of making misleading statements and lacking efficient internal accounting controls.
Additional legal woes include a lawsuit served by John Brier and Bin Tu, co-founders of acquired lottery data company, TinBu, alleging failure in compensation delivery by Lottery.com.
On a promising note, the company resumed ticket sales in April to buoy affiliate partners via its Texas retail network. Furthermore, in September, Lottery.com managed to regain compliance with Nasdaq stock market rules after previously breaching the minimum bid price requirements.
In a year tarnished by executive reshuffles, lawsuits, and compliance challenges, Lottery.com’s dedication to leadership restructuring under McGahan’s stewardship offers a prospect of stability. The company now looks to its new team to navigate through turbid waters and steer toward a future replete with innovation and renewed financial vigor.
