LottoGopher Holdings Inc. (LTTGF)

[jj494]

$LTTGF - Disruptive Technology for Lotteries

http://globalsmallcaps.com/2017/09/25/5lottogopher-holdings-inc-disruptive-technology-for-lotteries/


On August 24th of this year, Mavis J. Wanczyk claimed the largest undivided Powerball lottery winnings in history. The prize was $759 million, which she chose to claim in a single payment of $480 million. She promptly quit her job in a Massachusetts hospital.

While claiming her prize and meeting with reporters, she indicated that a few days before she had stood in line with about a dozen other hopeful ticket purchasers in Chicopee, Massachusetts.

One of those who did not win the Powerball in late August is the analyst writing this report. I am not a regular player of lotteries, but the huge August prize was too tempting to pass up. I purchased my tickets (six tickets for US$12) at a local convenience store, standing in line with about six or seven other individuals hoping to win the big prize. I had also played the lottery the week before purchasing the tickets at the same local store — standing in line to do so.

Unfortunately, it was back to work for me on Monday morning after Mrs. Wanczyk won the huge prize. While playing the lottery certainly doesn’t make economic sense to me, as the odds of winning are extraordinarily small, nevertheless it’s mindless entertainment and something that I can do with family and friends. It’s fun.

Of course, I’m not alone in my desire to occasionally play the numbers, as tens of millions throughout the world also share this passion. In fact, it’s a growing passion. As is outlined in Exhibit 1 below, during 2016, lottery ticket sales globally grew by more than 4%, doubling the growth rate of 2015. Over the past five years the annual compound growth rate was 5.7%, of course, well above GDP growth for nearly every major country in the world.

As is outlined below, the worldwide growth in lotteries dwarfs the growth of most business segments in the economy. It’s a successful “business” that generates billions of dollars per year and it continues to grow at an amazing rate.

LottoGopher, began trading as a public company in early 2017, so this is a new operation without much history. The shares trade on the U.S. OTCQB market with the symbol LTTGF, in Canada on the CSE under the symbol LOTO, and in Germany under the symbol 2LG.

The Company is approaching a market that has seen little innovation, and they have already been very successful in the very important California market. They now seek to leverage this experience to 22 other U.S. states. We will be watching its process toward this goal.