RE:hit the bid ... donno how this got to .11/sh.YES I UNDERSTAND IT LITTLE GUY !! FIRST OFF POOR PEOPLE ARENT THE ONES BUYING THE MAJORITY OF LOTTO TICKETS , SECOND PEOPLE HAVE BEEN KNOWN TO STAND IN LINE UPS FOR HOURS WHEN JACKPOTS GET BIG AND THAT HAPENS QUITE REGULARLY , THIRD PEOPLE HAVE BEEN KNOWN TO LOSE THEIR TICKET OR FORGOT TO BUY ONE . LETS NOT FORGET THE TIME SPENT TO GO BUY ONE >OH SORRY YOU MUST BE A LONELY GUY TO CONSIDER BUYING A LOTTERY TICKET A SOCIAL EVENT . PLEASE READ ------
LottoGopher believes it offers a disruptive technology option that will appeal to consumers, reflecting greater convenience of purchasing online, using a credit card and eliminating the risk of losing a winning ticket, among other benefits.
LottoGopher does not participate in any of the lottery prizes. Customers purchase lottery tickets at face value, as the company also does not impose a markup on the ticket price. Rather, its business model is to offer its services on a subscription basis. California residents can purchase a monthly subscription for $12 or an annual one for $99. Customers can select their lottery numbers themselves or use an automated, random-number generator. To process payments, the company has entered into agreements with third-party credit card companies, including Visa, MasterCard and American Express, and is also integrating payment processing solutions such as NetCents payment to enable digital solutions, including Bitcoin and Ethereum. Bitcoin and Ethereum are encrypted digital currencies. NetCents is a technology company with software solutions for ecommerce.
The company’s target market is millennials, a demographic that is accustomed to ordering items online. Integrating with payment solutions that accept digital currencies is a key part of this strategy. Given the monthly and annual subscription fees, the service is aimed at people who purchase multiple lottery tickets on a recurring basis. LottoGopher seeks to make it convenient for its target demographic to order Powerball, Mega Millions and SuperLotto Plus tickets. These tickets generated $1.3 billion in the state of California in fiscal year (FY) 2015-16, as illustrated above. As the company continues to enhance its service, it has registered increased momentum in member acquisition over the past few months, according to management.
Eliminating the Risk of Losing a Winning Ticket
LottoGopher members can play individually with a single ticket or in groups to pool winnings from California lotteries. LottoGopher offers memberships that allow California residents to order multiple tickets from various state lotteries. LottoGopher also provides player strategies, lottery statistics, jackpot alerts and lottery news, among other features.
Once a customer purchases a ticket online, a LottoGopher.com employee visits a retailer to buy the physical ticket. LottoGopher.com does not mail tickets to its customers and believes this eliminates the risk of losing a winning ticket. This feature is important given that more than $2 billion in annual lottery winnings are unclaimed each year, according to CNN. While most of the unclaimed winning tickets are for small prizes, some are worth thousands of dollars. Using LottoGopher, customers can track their numbers and ticket history on their personal user dashboard. These features simplify the process of keeping records of tickets and winnings.
Marketing Campaign Underway
The LottoGopher management team is adept at marketing and the company is conducting a broad promotional campaign that includes media coverage, influencer and digital marketing, sponsorships and endorsements with sports teams and celebrities. On June 1, 2017, LottoGopher announced that it had entered into a sponsorship agreement with California’s Anaheim Ducks hockey team. During the recent NHL playoffs , the company offered promotional giveaways to hockey fans. LottoGopher is also launching an extensive digital marketing campaign targeting Californians and intends to partner with influencers in order to drive traffic and increase conversion rates. For example, it has entered into a one-year contract with Scott Disick of Kardashian fame who has nearly 20 million followers on his Instagram.
Among the highest profile endorsements, Kevin Harrington joined LottoGopher’s board in June of 2017. He was an original shark on ABC’s Shark Tank and “has launched over 500 products generating more than $5 billion in sales worldwide,” according to his website. LottoGopher granted him 621,469 incentive stock options in connection with the affiliation. The company also just announced William Shatner as its official spokesperson. The actor has made a video discussing LottoGopher and notes that for residents outside the state of California, “We’ll get to you soon.” In fact, the company is laying the groundwork for its contemplated expansion into additional states. It has retained a consultant to advise and assist with the due diligence process.
Lottery – History and Background
Lotteries are extremely important to states as a means of supplementing their tax base revenue and thereby augmenting state budgets. According to the North American Association of State and Provincial Lotteries (NASPL), the country’s first modern lottery was the New Hampshire Sweepstakes. Its debut tickets were sold on March 12, 1964. In 1987, the Multi-State Lottery Association was established with six initial members and its first game, Lotto*America, was introduced in 1988. Four years later, Lotto*America was replaced with Powerball, which remains popular today.
The California lottery was created by Proposition 37, which was passed with 58% approval on November 6, 1984. The mission of the state’s Lottery Act was to supplement funding for public schools and colleges. Initially, the Lottery Act mandated that 34% of lottery ticket sales be earmarked towards the state’s education budget. In April 2010, the state Legislature passed Assembly Bill 142, which requires that 87% of lottery ticket sales be returned to the public in the form of prizes and contributions to education. Bill 142 gives the state lottery greater flexibility than it had previously to pay a higher percentage of revenue in prizes, but only if the money allocated to public schools and colleges increases as well.