Mr. Jake Kalpakian reports

JACKPOT DIGITAL ANNOUNCES THE CLOSING OF THE FIRST TRANCHE OF THE PRIVATE PLACEMENT

Jackpot Digital Inc., further to the company's news release dated July 10, 2023, has closed the first tranche of the private placement of convertible debentures for aggregate gross proceeds of $1,318,657.50. The debentures will bear interest of 10 per cent per annum, and are convertible into common shares of the company at the price of 7.5 cents per share in the first year and at 10 cents per share in the subsequent four years. The company has also issued an aggregate of 17,582,100 share purchase warrants, exercisable at 10 cents per share for a period of five years.

The securities issued are subject to the statutory hold period, which will expire on Nov. 29, 2023.

Proceeds from the debenture financing will be utilized toward regulatory licensing fees and related expenses in multiple jurisdictions to facilitate the widespread placement of Jackpot Blitz electronic table games (ETGs) and for general working capital.

About Jackpot Digital Inc.

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

We seek Safe Harbor.