Mr. Jake Kalpakian reports

JACKPOT DIGITAL RENEGOTIATES DEBT AND PAYMENT SCHEDULE WITH SIGNIFICANT SAVINGS

Jackpot Digital Inc. has entered into a third amendment agreement with the company's major debentureholders in respect to debentures in the aggregate principal amount of $4,966,825 ($3,735,297 (U.S.)), whereby the parties have agreed to a new payment schedule. Subject to certain terms and conditions, the new payment schedule shall commence on July 31, 2023, and shall terminate on July 1, 2025.

In addition, the company has entered into a subsequent extension agreement in respect to a debenture in the principal amount of $328,000, whereby the parties have agreed to a new payment schedule. Subject to certain terms and conditions, the new payment schedule shall commence on July 31, 2023, and shall terminate on July 1, 2025.

In aggregate the new payment schedule is as follows: 1) $700,000 (U.S.) by July 31, 2023; 2) $1.3-million (U.S.) by July 1, 2024; and 3) $2,742,497 (U.S.) by July 1, 2025. If the new payment schedule is met, the debentureholders have agreed to a significant reduction in interest payments, thus savings to the company would be approximately $4,045,091 ($3,042,108 (U.S.)). Upon making the scheduled payments and therefore benefitting from the reduced interest expense, the company will eliminate a substantial amount of its debt. In the event the company defaults on the new payment schedule, then the remaining principal outstanding shall immediately be due and payable along with all accrued and unpaid interest to the debentureholders.

The company also announces that it intends to conduct an unsecured convertible debenture financing to raise up to $3-million in gross proceeds. The debenture financing will pay interest at the rate of 10 per cent per annum and will mature 60 months from the date of issuance. The debenture financing shall be convertible up to 40 million common shares of the company at the conversion price of 7.5 cents per common share in the first year, and at the conversion price of 10 cents per common in subsequent years. In addition, the company shall issue 40 million share purchase warrants, whereby each warrant shall entitle the debenture holder to purchase one Jackpot common share at the price of 10 cents per share for a period of five years. It is expected president and chief executive officer Jake Kalpakian and a well-respected United States gaming industry executive will be participating in the financing.

Proceeds from the debenture financing will mainly be utilized towards regulatory licensing fees and related expenses in multiple jurisdictions, industry product certification and for general working capital.

Mr. Kalpakian states: "The significant interest expense savings of approximately $4,045,091 is a tremendous boost to the company. Furthermore, with our latest GLI industry testing certification well under way, the additional capital will put the company in a stronger position to expand its growing business."

The securities that may be issued in connection with the debenture financing shall include a hold period in accordance with applicable securities laws. There may be finders' fees payable in respect to the debenture financing in accordance with the policies of the exchange, and certain insiders may participate in the financing.

The third amendment agreement, the subsequent extension agreement and the debenture financing are subject to the approval of the TSX Venture Exchange.

About Jackpot Digital Inc.

Jackpot Digital is a leading electronic table games manufacturer and mobile gaming provider for the cruise ship industry and regulated casino industry. The company specializes in multiplayer gaming products, including poker and casino games, which are complimented by a robust suite of back-end tools for operators to efficiently control and optimize their gaming business.

We seek Safe Harbor.