Research report labels SEGG a “fake company” with almost no business
Sports Entertainment Gaming Global (SEGG) is seeking $20 million in damages after a research firm accused the business of being a “fake company”.
The dispute stems from a June 10 report from White Diamond Research which accused SEGG of lying to investors about the company’s prospects through a series of “scam” press releases.
The White Diamond report places particular focus on SEGG’s recently announced partnership with Polymarket, which it describes as “bullshit” and unlikely to materialize.
White Diamond Research said in its report: “This is a common practice by the company. SEGG has historically published PRs with false promises of business expansion or partnerships. The expansions and partnerships never materialize, and SEGG doesn’t put out any follow-up announcements about what happened. They then move on to the next bullshit business expansion/partnership PR which doesn’t pan out to anything.”
White Diamond cites several examples of unfulfilled promises from 2025, including Lottery.com’s announced launch of international lottery operations; Lottery.com’s acquisition of new lottery technology; Lottery.com’s planned launch in Europe and Asia; the launch of an advertising model on Sports.com; the launch of Sports.com Studios; Lottery.com’s acquisition of GXR World Sports; and Lottery.com’s relaunch in the United States and Mexico.
Gaming Intelligence ceased reporting on Lottery.com/SEGG in 2022.
In April, SEGG announced a partnership with Polymarket to add prediction markets to Sports.com, with the announcement prompting a surge in the company’s share price.
White Diamond Research notes that despite numerous press releases to the contrary, Sports.com has been inactive since its acquisition in early 2021.
“It is a catchy sounding domain, but the company hasn’t done anything with it or monetized it at all for all of these years,” says the research report. “We don’t believe they are going to start now. Instead, they perpetually use the domains sports.com and lottery.com to make fraudulent claims of expansion to dangle in front of shareholders in order to sell stock.”
“The purpose of having a partnership for Polymarket is to attract users of a different website,” the report adds. “However, sports.com has no users and so Polymarket has no incentive to partner with them. As we showed above, sports.com is inactive and has been for many years. There’s no advantage for anyone who wants to make a bet on Polymarket to do it through sports.com. They can just go straight to polymarket.com to make bets.”
The report concludes: “SEGG isn’t a real company. It just announces various schemes in order to sell stock to investors. It’s not the type of company to develop a business and hope to eventually make a profit. That will never happen with its current management. A tiger can’t change its stripes.”
White Diamond Research stated in its report that SEGG was unlikely to add prediction markets to Sports.com in time for the FIFA World Cup.
As of today, Sports.com has event contracts listed for 14 upcoming World Cup matches, with bettors required to connect an external crypto wallet in order to place bets.
The service is provided through Sports Predicts, which is incorporated in Malta but is not licensed there. Its event contracts are not available to players in key gambling jurisdictions, including Australia, France, Germany, Italy, the Netherlands, the United Kingdom, and the United States.
In a press release Friday, SEGG accused White Diamond Research of making false, misleading and disparaging statements about the company that caused its shares to drop by more than 50 per cent.
“Healthy debate and differing investment opinions are part of the public markets. We respect the right of investors, analysts and commentators to express opinions regarding our business and prospects. However, we believe certain statements published about SEGG Media go far beyond opinion and constitute materially false representations of fact,” said Robert Stubblefield, chief financial officer and interim CEO of SEGG Media.
“Reasonable people may disagree about valuation, strategy or future performance. What they cannot do is publish false statements with malice while omitting material publicly available information. We believe our shareholders and the investor public in general deserve accurate information upon which to make investment decisions, and we intend to vigorously defend both the Company and our shareholders against what we believe are false and disparaging attacks.”
SEGG is seeking $20 million in damages from White Diamond Research.
The lawsuit was filed in the same week that former Lottery.com CEO Vadim Komissarov was sentenced to three years in prison for securities fraud.
SEGG is currently delinquent in filing its financial results for the first quarter of 2026 and only recently filed its 2025 accounts.
SEGG had revenue of approximately $0.69 million and an operating loss of $18.11 million in 2025. SEGG’s accumulated loss stood at $282.30 million at the end of the year.
SEGG is in the process of acquiring Veloce Esports. Together, the two companies had proforma revenue of $10.34 million in 2025 and a net loss for the year of $18.15 million.
Shares in Sports Entertainment Gaming Global Corp. (NASDAQ:SEGG) gained 5.47 per cent to close at $0.91 per share in New York Friday but were down 2.24 per cent in pre-market trading at $0.89 per share.