SEGG to restate 2023-2025 financials after legacy fraud disclosure

Sports Entertainment Gaming Global Corporation (SEGG) filed an 8-K on September 25, 2026, announcing that its previously issued financial statements for the years ended December 31, 2023, 2024, and 2025, along with the corresponding quarterly reports, require corrections. The company determined that these periods were affected by two historical transactions from 2020 and 2021 that overstated revenue and inflated the acquisition price of Global Gaming Enterprises, Inc.

The disclosure stems from "New Information" obtained by SEGG's current management between July 15, 2026, and August 7, 2026. This information came from sworn deposition testimony involving Ryan Dickinson, a former co-founder of Lottery.com Inc. (now SEGG), and Jeffery Sparrow, the former CEO of Datassure. The testimony revealed that in December 2020, Vadim Komissarov, the former CEO of Trident Acquisition Corp., instructed Lottery's former executives to record a $9 million transaction with Datassure as revenue and cash. However, the funds were held in a restricted escrow account at Boston Law Group P.C. and were inaccessible to AutoLotto, Inc., the former name of SEGG.

According to the filing, the $9 million in escrow belonged to an acquaintance of Komissarov. The company stated that AutoLotto purportedly received this amount for selling customer data to Datassure but used it to purchase Global Gaming from Pan European Associates, S.R.O., a Czech entity created by Komissarov. This structure returned the entire sum to its original source. The filing asserts that the Legacy Transactions were designed to be circular in nature.

Komissarov was sentenced to three years in prison on June 24, 2026, for his involvement in these transactions. Lawrence Anthony DiMatteo and Matthew Clemenson pleaded guilty on May 22, 2025, for their roles in the fraud, and both are currently awaiting sentencing. Ryan Dickinson also participated in executing the revenue and cash transactions reported in December 2020 and throughout the first half of 2021. The acquisition cost for Global Gaming was overstated at $10,572,674 in June 2021 based on documentation created to make these transactions appear legitimate.

SEGG stated that its current officers and directors had no involvement in the Legacy Transactions or any other allegations against the former executives. No individual who participated in the fraud is currently employed or engaged with the company.

The corrections to the financial statements for the 2023 through 2025 periods will reflect the true nature of these historical events. The company noted that the amended financial statements will result in lower expenses for amortization and the elimination of previously reported impairment charges. These changes will reduce previously reported losses and accumulated deficit amounts. Additionally, the corrections will decrease previously reported goodwill.