Lottery.com's SPAC-era revenue was circular borrowed cash — and the bill keeps arriving

Sports Entertainment Gaming Global Corporation — formerly Lottery.com, born as AutoLotto and merged with the SPAC Trident Acquisition Corp — filed an 8-K on October 8, 2026 disclosing that two connected 2020-2021 deals, the Legacy Transactions, overstated revenue and inflated an acquisition price. The filing says Vadim Komissarov, former CEO of the Trident SPAC, designed them to be circular: revenue was generated with borrowed funds held in escrow at a Massachusetts law firm, then used to support AutoLotto's June 30, 2021 purchase of Global Gaming Enterprises.

Current management learned the details from sworn depositions taken July 15 to August 7, 2026 of former President and CFO Ryan Dickinson and Datassure's ex-CEO Jeffery Sparrow in an unrelated matter. The New Information: in December 2020, Komissarov instructed co-founders DiMatteo and Clemenson and Dickinson to record a $9,000,000 Datassure transaction as revenue and cash even though AutoLotto could not possess, access or transfer the funds — the money belonged to an acquaintance of Komissarov and sat in a restricted escrow account at Boston Law Group P.C.

AutoLotto purportedly earned that $9 million selling customer data to Datassure, then used it to buy Global Gaming from a Czech company Komissarov created to conceal the spurious 2020 revenue. The legal tail is long: Komissarov was sentenced on June 24, 2026 to three years in prison over the Legacy Transactions; Clemenson and Dickinson pleaded guilty on May 22, 2025 and await sentencing. The accounting correction spans 2020 through 2025 — 2023 goodwill drops $3,880,443 to $7.35M — and the filing calls the effect substantially more consequential for 2020 through 2022.

Financial statements for 2020-2025 under correction; 2023 goodwill cut by $3.9M; the SPAC's ex-CEO drew a three-year prison sentence.

The transactions were circular by design: borrowed escrowed funds generated paper revenue that was then used to fund and justify an acquisition.

Executives instructed staff to book the Datassure deal as revenue and cash despite the company's inability to possess, access or transfer the money.

The inflated 2020-2021 revenue flowed into the Global Gaming acquisition price, compounding the distortion across the balance sheet for years.

The scheme surfaced only when deposition testimony in an unrelated matter reached the company's current management, five years after the fact.

Borrowed funds routed in a circle can dress up revenue and an acquisition price until sworn testimony arrives; circularity is the tell auditors and courts both eventually trace.

The 8-K, reporting an event dated September 25, 2026, lays out corrections to the 2023, 2024 and 2025 annual and quarterly statements that will lower previously reported losses, with larger corrections still for 2020-2022; management says it does not believe the corrected periods should be characterized as unreliable. Komissarov began serving a three-year sentence in June 2026, and Clemenson and Dickinson await sentencing after their May 2025 guilty pleas. The company, now trading on Nasdaq as SEGG, continues to distance itself from everyone who built the SPAC-era numbers.