McGahan becomes CEO on permanent basis having served in the role in the interim since July 2023. This followed the departure of Mark Gustavson after only taking the position in February at Lottery.com.
McGahan joined Lottery.com as chair in October last year, shortly after Sohail Quraeshi became interim CEO. Incidentally, Quraeshi was replaced as CEO by Gustavson earlier this year.
Prior to this, McGahan founded UK charity Mask Our Heroes to help supply personal protective equipment during the Covid-19 pandemic. The charity procured and shipped masks to the UK. He also founded – and later sold – Harley-Davidson dealer Magic Automotive Group.
“I’m honoured and excited for the trust placed in me to navigate Lottery.com’s future,” McGahan said.
New CFO and COO also confirmed for Lottery.com
Joining McGahan in the leadership team is Gregory Potts, who has been promoted to chief operating officer. Potts as previously served as global vice-president of affiliate success at Lottery.com.
Before joining Lottery.com, Potts held senior roles at Valassis, LockNet, Kwikee and MultiAd.
In addition, the Lottery.com board approved Robert Stubblefield as chief financial officer. He was appointed to the role in July, with this now having been reaffirmed by the board.
“Our innovative approach, backed by our stakeholders and leadership team, promises to transform the lottery industry and also maximise our investments in the Sports.com domain and Nexus Gaming System,” McGahan said.
Net loss down in Q3
Confirmation of the new-look leadership team comes after Lottery.com earlier this month published its Q3 results. These revealed lower revenue but a reduced net loss.
Revenue fell 59.9% to $285,523 (£228,093/€265,087). However, cost of revenue fell 73.4% and operating spend was down 47.7%.
Lottery.com did not pay any tax but noted $34,256 in negative foreign currency translation impact. It also accounted for $72,277 in income from non-controlling interests. As such, net loss for Q3 hit $3.4m, an improvement on last year’s $6.0m.
Light relief for troubled Lottery.com?
Lottery.com will be hoping the new leadership team will help steady the ship after another turbulent year.
Alongside several changes in management, Lottery.com in May revealed it faces “material weakness” over accounting non-compliance. This relates to a class action suit served in August 2022 on behalf of investors and former high-ranking employees.
It alleges Lottery.com made “materially false or misleading statements”, as well as failing to disclose that the company lacked adequate internal accounting controls.
Lottery.com was also served with a lawsuit by John Brier and Bin Tu, founders of lottery data business TinBu. This alleged it failed to give them promised compensation after the company was acquired.
However, there has been some good news. In April, Lottery.com resumed ticket sales to support affiliate partners through its Texas retail network.
More recently, Lottery.com regained compliance with Nasdaq stock market rules after falling foul of regulations. In September, Nasdaq’s listing qualifications department confirmed the broker evidenced compliance with minimum bid price requirements.