Mr. Jake Kalpakian reports

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

Further to Jackpot Digital Inc.'s news releases dated July 10, 2023, and July 31, 2023, the company has closed the second tranche of the private placement of convertible debentures for aggregate gross proceeds of $1,647,125. 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 21,961,667 share purchase warrants exercisable at 10 cents per share for a period of five years. In addition, Jackpot would like to announce a proposed increase of the debenture financing for a third and final tranche for additional gross proceeds of up to $500,000 scheduled to close on or around Aug. 24, 2023.

The securities issued are subject to the statutory hold period, which will expire on Dec. 3, 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 ETGs, and for general working capital.

About Jackpot Digital Inc.

Jackpot Digital is a leading electronic table games 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 businesses.

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