Shares of Sports Entertainment Gaming Global (SEGG) dropped more than 15% following a report from White Diamond Research. The short-seller labeled the Lottery.com parent company a fake company scam.
White Diamond alleges that SEGG possesses no legitimate business operations or cash reserves. The report claims the firm issues misleading press releases to temporarily inflate stock prices for insider sales.
Specific assets like Sports.com reportedly remain inactive and have failed to generate revenue. SEGG currently faces six lawsuits, including a fraud case filed by the U.S. Securities and Exchange Commission in January 2026. That SEC action alleges the company engaged in significant financial misrepresentation.