For the second time in two days, the Colorado football team has added a cornerback recruit to the 2026 class.

At the ATN Innovation Summit, McKinsey and L Catterton insiders laid out what it’ll take to survive and thrive as consolidation reshapes the fitness industry

The fitness and wellness industry is entering a pivotal era of consolidation, one that will define which companies emerge as long-term winners and which are left behind.

That was the consensus among industry leaders during a panel discussion moderated by Edward Hertzman, founder and CEO of Athletech News, at the ATN Innovation Summit 2025. Key insights came from Eric Falardeau, partner at McKinsey & Co., Jeff Rudnicki, senior partner at McKinsey, and Marc Magliacano, managing partner at L Catterton.

The conversation was anchored by a newly released letter from McKinsey urging operators to rethink their strategy and positioning before it’s too late. 

“The sector is consolidating quicker,” said Falardeau. “This is not a new thing, but it’s consolidating quicker and that has implications for strategy… What will it mean to win in five years versus in the last five years?”

Differentiation Remains Key

As companies face tough questions about what’s next, one segment is charging ahead: high-value, low-price (HVLP) gyms. Magliacano pointed to a surge, fueled in part by demand from women integrating strength training into their everyday routines.

“You’re going to have ongoing massive growth in boxes and clubs in the U.S.,” he said.

To stay competitive, clubs need to create a clear point of differentiation around their model, something that draws members in despite rising options.

“So people will drive past brand A, B, and come to your brand C,” Magliacano said. 

“Today, I will tell you, the data says the members are very satisfied with their current HVLP operator,” he added. “Everyone’s happy, but at some point, when you’re trying to get that incremental member to your club, you’re going to have to showcase differentiation.”

Rethinking Aggregators 

As the fitness and wellness industry evolves amid consolidation, panelists highlighted employers as a powerful gateway.

“I really like the idea of well-operated fitness clubs… and aggregators, especially the ones that are going through employers to help make real partnerships with HR, in big businesses, to truly expand the number of people that adopt habits,” Falardeau said.

Magliacano echoed that sentiment, citing L Catterton’s investment in EGYM’s Wellpass and ClassPass. He also challenged long-standing assumptions about aggregators. 

“Some of those old paradigms of aggregators are bad, and it’s all about operational excellence within the fitness club segment – that’s all we need. That’s true today,” he said. “I just don’t know in the next five to 10 years.”

M&A Moves to Center Stage

Rudnicki didn’t mince words when addressing misconceptions about M&A.

“Seventy to ninety percent of deals do not fail. If you’ve heard that, that’s wrong,” he said. “It’s almost the opposite. The companies that remain the best for a long time are also the best at M&A. The company you’re thinking of when I say, ‘What’s a company that you admire that’s been great for 10-plus years?’ I promise you their M&A function and capability is the secret.”

But M&A success, Rudnicki cautioned, requires careful planning and an honest assessment of organizational abilities. 

“M&A is not a strategy. M&A is a tool,” he said. “What capabilities do you need that M&A can provide? What can you do quicker or better through acquisition than you can build in-house?”

Rudnicki urged executives to build a “proactive sourcing engine” to identify targets aligned with long-term goals. That includes moving beyond financial due diligence to evaluate strategic fit and cultural compatibility.

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“Acquiring and integrating your closest competitor is going to be a lot different than acquiring and integrating a digital offering, something in a different space,” he said.

Together, the panel called for a shift in mindset. Rather than simply asking, “What’s our M&A plan?” operators should be asking: “What’s our strategy, and how can M&A accelerate it?”

Small Operators, Big Opportunities

While much of the conversation focused on large-scale consolidation, the panel was clear that smaller operators are far from doomed, as long as they remain proactive and adaptive.

“If you’re an independent health club operator, it doesn’t mean you can’t win,” Magliacano said. “Fitness club service, as I’ll call it, is a local business. Local business is high touch, high emotion, high brand love, high member love. So you absolutely have the right to win. It’s just going to be different tomorrow, and so really, being prepared, the ‘how to win’ will be different than the way you may have won yesterday.”

The key, panelists said, is building a moat through differentiation and community connection – advantages big brands often overlook.

“If you really think about your business and what you can do in your local market… you have the grand advantage to go out there and create your own moat that will allow you to continue to thrive and prosper against some of the bigger names,” Magliacano added.

Falardeau reinforced that view.

“There’s room for more than one winner, and there’s room for winners of different sizes,” he said.

This article is based on a live discussion held during the ATN Innovation Summit 2025, a two-day event dedicated to the future of fitness and wellness. See here for more Innovation Summit coverage. 

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Newark residents have discovered a fitness revolution that’s changing how they approach their health and wellness goals. The city’s fitness enthusiasts are embracing virtual fitness clubs that offer the perfect blend of convenience, community, and cutting-edge workout technology right from their living rooms.

These digital fitness platforms have become lifelines for busy Newark professionals, parents juggling multiple responsibilities, and fitness enthusiasts who want premium instruction without the hassle of commuting to traditional gyms. The transformation has been remarkable, with locals reporting higher consistency in their workout routines and stronger connections to fitness communities than ever before.

The appeal extends beyond mere convenience. These virtual fitness clubs offer Newark residents access to world-class instructors, diverse workout styles, and flexible scheduling that adapts to the unique rhythms of urban life. Whether someone works shifts at Newark’s busy port, commutes to New York City, or manages a household, these platforms provide fitness solutions that fit seamlessly into their daily routines.

1. FitFlow Studio revolutionizes home workouts with live interaction

FitFlow Studio has captured the hearts of Newark fitness enthusiasts with its innovative approach to virtual training that makes participants feel like they’re actually in a premium boutique studio. The platform’s secret weapon lies in its real-time interaction capabilities that create genuine connections between instructors and participants, despite the physical distance.

The virtual studio offers an impressive variety of classes throughout the day, accommodating Newark’s diverse work schedules. Early morning sessions cater to commuters heading to Manhattan, while evening classes serve those returning from long workdays. Weekend programming includes family-friendly options that have become particularly popular among Newark parents looking to involve their children in active lifestyles.

What sets FitFlow Studio apart is its sophisticated technology that allows instructors to provide personalized feedback during live sessions. Participants can receive form corrections, motivation, and modifications in real-time, creating an experience that rivals in-person training. The platform’s camera positioning guides help users optimize their setup for maximum instructor visibility and feedback.

The community aspect has proven especially valuable for Newark residents who might otherwise feel isolated in their fitness journeys. Virtual workout buddies have formed organically through the platform, with many participants scheduling regular sessions together and supporting each other’s progress outside of class times. This social connection has helped combat the loneliness that often accompanies home workouts.

The platform’s diverse instructor roster brings expertise from various fitness disciplines, ensuring that Newark residents can explore everything from high-intensity interval training to restorative yoga without leaving their homes. Monthly challenges and achievement tracking keep participants engaged and motivated to push their boundaries.

2. Urban Pulse Fitness creates neighborhood-specific workout experiences

Urban Pulse Fitness has gained tremendous popularity among Newark locals by recognizing that city dwellers have unique fitness needs and preferences. The platform specifically designs workouts that acknowledge the realities of urban living, from small apartment spaces to the need for stress relief after navigating busy city life.

The platform’s apartment-friendly workout library has become a game-changer for Newark residents living in compact spaces. These carefully designed routines require minimal equipment and generate low noise levels, making them perfect for apartment buildings where neighbors share walls and floors. The workouts maximize results while respecting the urban living environment.

Stress-relief programming has resonated particularly well with Newark’s working population. After dealing with traffic, crowded public transportation, and demanding work schedules, residents find sanctuary in Urban Pulse’s meditation sessions, gentle yoga flows, and mindfulness-based movement classes. These offerings address both physical fitness and mental wellness needs.

The platform’s flexible membership options cater to the varied economic realities of Newark residents. From students to young professionals to established families, Urban Pulse offers pricing tiers that make quality fitness instruction accessible across different income levels. This inclusivity has built a loyal community that appreciates the platform’s commitment to serving diverse populations.

Urban Pulse’s strength training programs have gained particular praise for their effectiveness in small spaces. The workouts utilize bodyweight exercises, resistance bands, and household items creatively, eliminating the need for expensive equipment or gym memberships. Newark residents appreciate the cost-effectiveness combined with professional-quality instruction.

The platform also offers nutrition guidance tailored to urban lifestyles, acknowledging the challenges of maintaining healthy eating habits when surrounded by fast food options and dealing with busy schedules. This holistic approach to wellness has helped Newark participants achieve better overall health outcomes.

3. FlexTime Fitness adapts to Newark’s around-the-clock lifestyle

FlexTime Fitness has become indispensable for Newark residents whose work schedules don’t conform to traditional nine-to-five patterns. The platform’s 24/7 availability and on-demand library cater to shift workers, healthcare professionals, service industry employees, and anyone whose schedule requires flexibility.

The platform’s extensive on-demand library contains thousands of workout options ranging from quick 15-minute sessions to comprehensive hour-long classes. This variety allows Newark residents to choose workouts based on their available time, energy levels, and specific fitness goals. Busy parents can squeeze in short sessions during lunch breaks, while others can enjoy longer workouts on weekends.

FlexTime’s adaptive programming technology learns from user preferences and performance to suggest increasingly personalized workout recommendations. Newark residents appreciate how the platform evolves with their fitness journeys, automatically adjusting difficulty levels and suggesting new challenges as they progress.

The platform excels at providing professional-quality instruction for those who might feel intimidated by traditional gym environments. Many Newark residents have discovered their love for fitness through FlexTime’s beginner-friendly programs that build confidence gradually. The non-judgmental virtual environment allows people to learn proper form and technique without feeling self-conscious.

Recovery and wellness programming has become increasingly popular among Newark’s active community. The platform offers guided stretching sessions, foam rolling tutorials, and recovery-focused workouts that help participants maintain their fitness routines while avoiding injury and burnout.

FlexTime’s integration with wearable fitness devices appeals to tech-savvy Newark residents who want to track their progress comprehensively. The platform syncs with popular fitness trackers and provides detailed analytics that help users understand their fitness patterns and optimize their routines accordingly.

The technology that makes virtual fitness work

The success of these virtual fitness clubs relies heavily on sophisticated technology that creates seamless, engaging experiences for Newark residents. High-definition video streaming ensures that participants can see instructor demonstrations clearly, while advanced audio systems deliver crystal-clear instructions and motivating music.

Interactive features like real-time heart rate monitoring, virtual high-fives, and progress sharing create community connections that rival in-person experiences. Newark residents frequently comment on how these technological elements make them feel connected to both instructors and fellow participants despite physical separation.

Mobile app functionality allows Newark residents to access their favorite fitness classes from anywhere, whether they’re at home, traveling for work, or visiting family. The seamless cross-device experience means workouts can start on a phone during a commute and continue on a larger screen at home.

Community building in virtual spaces

These virtual fitness platforms have successfully created genuine communities among Newark residents who might never have connected otherwise. Virtual workout groups organized by neighborhood, fitness level, or specific interests have formed organically, with participants supporting each other’s goals and celebrating achievements together.

Social features like leaderboards, achievement badges, and progress sharing have gamified the fitness experience in ways that keep Newark residents engaged long-term. Friendly competition among neighbors and coworkers has motivated many to maintain consistent workout routines.

The platforms facilitate connections that extend beyond fitness, with Newark residents forming friendships, organizing in-person meetups, and supporting each other through life’s challenges. These relationships demonstrate how virtual communities can create real, meaningful connections.

Accessibility and affordability advantages

Virtual fitness clubs have democratized access to high-quality fitness instruction for Newark residents across all economic backgrounds. The elimination of commute times, parking fees, and expensive gym memberships has made regular exercise more accessible to families and individuals with limited resources.

The platforms accommodate various physical abilities and fitness levels, offering modifications and alternative exercises that ensure everyone can participate safely and effectively. This inclusivity has attracted Newark residents who might have felt excluded from traditional fitness environments.

The future of fitness in Newark

The overwhelming success of these virtual fitness clubs among Newark residents suggests a permanent shift in how urban communities approach health and wellness. The platforms continue to evolve, incorporating new technologies like virtual reality workouts and AI-powered personal training that promise even more personalized and engaging experiences.

Local fitness enthusiasts predict that hybrid models combining virtual and in-person elements will become the norm, offering Newark residents maximum flexibility in how they pursue their fitness goals. The convenience and community aspects of virtual fitness have proven too valuable to abandon, even as traditional gyms reopen and expand their offerings.

These three virtual fitness clubs have transformed Newark’s fitness landscape by proving that effective, engaging, and community-focused workouts don’t require physical gym spaces. They’ve created sustainable fitness habits among residents who previously struggled to maintain consistent exercise routines, demonstrating the power of technology to remove barriers and create connections in urban environments.

BATANGAS State University (BatStateU), the Philippines’ national engineering institute, inaugurated on June 19 its Knowledge, Innovation and Science Technology (KIST) Park’s Ventures Hub.

The Ventures Hub seeks to transform the local startup ecosystem by helping turn innovative ideas into thriving projects.

It offers modular locator spaces tailored to help startups grow and scale up. It empowers industry locators to collaborate, explore ideas, and seize opportunities in partnership with BatStateU.

From left: Dr. Napoleon Juanillo Jr., assistant secretary for Technology Transfer, Communications and Commercialization, Department of Science and Technology; Dr. Marita Canapi, commissioner, Commission on Higher Education; Carmel Matabang, regional director, Department of Economy, Planning, and Development, Region 4A; Emelita Bagsit, regional director, DOST-Calabarzon; and Dr. Tirso Ronquillo, president, BatStateU and CEO, KIST Park. CONTRIBUTED PHOTO

Its focus will span semiconductors, electronics, artificial intelligence, agritech, healthtech, among other sectors, reflecting the university’s commitment to advancing technologies to solve real-world problems.

“Through initiatives like the Ventures Hub, we are ensuring that our students, researchers, and entrepreneurs have the tools, resources and expertise to bring their ideas to life — creating solutions that resonate on a global scale. The Ventures Hub will empower the next generation of tech entrepreneurs and fuel economic growth by turning their visions into thriving businesses that will drive the Philippine economy forward,” said Dr. Tirso Ronquillo, university president and KIST Park CEO.

In 2016, the university’s board of regents approved the construction of KIST Park, and in 2020 the Philippine Economic Zone Authority declared it a special ecozone.

The KIST Park, which has direct access to BatStateU’s rich pool of talent, will provide startups with expertise, research programs and an ecosystem designed to foster innovation. This strategic partnership ensures that ventures can seamlessly transition from research and development to market-ready solutions, enhancing their global competitiveness.

The inauguration ceremony kicked off with a ribbon-cutting event, followed by speeches from key stakeholders in the education and tech sectors, including Dr. Marita Canapi, commissioner of the Commission on Higher Education (CHED); Dr. Napoleon Juanillo Jr., assistant secretary for Technology Transfer, Communications, and Commercialization (TTCC) of DOST; and Carmela Matabang, regional director of the Department of Economy, Planning and Development (DEPDev), Region 4A.

They emphasized the importance of collaboration between industry and academe in advancing the country’s technology and innovation landscape.

Startups and industry locators at Ventures Hub will recognize the value of being part of an ecosystem where they are not building in isolation but co-creating alongside researchers, students and fellow innovators.

At the inauguration, existing industry locators such as Plant Science Philippines Corp., ParallaxED, TRIOE, Lycan Motorcycles, among others, participated in a unit exhibition showcasing their innovations, capabilities and active roles in shaping the vibrant, collaborative ecosystem within KIST Park.

BatStateU KIST Park offers substantial government-backed incentives, including income tax holidays, VAT zero-rating, and streamlined business registration processes. These advantages reduce barriers to innovation, creating an ideal environment for startups to scale and succeed.

BatStateU KIST Park is in Alangilan, Batangas City. It provides purpose-built infrastructure and dynamic spaces like the Ventures Hub to help “Transform Knowledge into Technology.”

FORT WORTH, Texas, June 26, 2025 (GLOBE NEWSWIRE) — Lottery.com Inc. (NASDAQ: LTRY, LTRYW) (“Lottery.com” or “the Company”), a leading technology company transforming the intersection of gaming, sports and entertainment, today announced it is advancing its global expansion with the planned launch of the Sports.com Super App (the “Super App”)—a first-of-its-kind digital destination for sports fans worldwide. The Super App is designed to combine live streaming, social engagement, e-commerce and gamification into a single immersive ecosystem.

The Super App, which is scheduled to launch in select global markets in Q3 2025, will initially focus on soccer and motorsport—two verticals Sports.com has been aggressively expanding into through a series of high-profile sponsorships and strategic initiatives. The Super App will be built on an existing platform development by Galaxy Racer Holdings Limited (“GXR”), The GXR app has achieved more than one million monthly active subscribers organically, demonstrating significant early traction and category-defining potential.

���We’ve spent the past two years building Sports.com around key pillars like soccer and motorsport,” said Mark Bircham, Director of Sports.com. “This acquisition and the launch of the Sports.com Super App is the culmination of a precise strategy to consolidate fragmented sports experiences. Our partnerships with emerging motorsport stars like Callum Ilott, Louis Foster, and Sebastian Murray, along with this technology acquisition sets the stage for an aggressive media expansion that will redefine how fans watch, play and engage with their favorite leagues, teams, and players.”

The Super App will integrate six primary features into a single experience: live streaming, community chat hubs, stats-based social media, e-commerce, real-money and fantasy sports gaming, and sports news. The Super App aims to engage fans across the full lifecycle of the sports experience, tapping into the 4–5 hours of average fan interaction beyond match time each week.

Revenue streams will include premium streaming subscriptions, in-app advertising, merchandising and interactive gamified challenges. Plans are underway to extend into additional sports verticals and incorporate immersive streaming experiences later this year.

To accelerate the development timeline for the Super App, Lottery.com has signed a Letter of Intent (LOI) to acquire a 51% controlling interest in the sports and technology assets of GXR, valuing the transaction at $10 million pre-money. Subject to due diligence and final agreement, the deal allows Lottery.com to fund the $5.1 million initial investment via cash, stock, or a combination at a fixed $3.00 share price. A $15 million financing commitment has also been pledged by Lottery.com to fuel expansion of the Sports.com Super App.

All GXR unencumbered assets, including its tech stack and user base, will be transferred to a new entity (NewCo), of which Lottery.com will initially own 51%. The agreement includes a call option to acquire 100% ownership of NewCo by the end of 2027. Exclusivity has been secured through June 30, 2025, with an automatic 30-day extension, and closing is anticipated on or before August 1, 2025.

“This is a transformational moment for the worldwide sports media ecosystem,” said Paul Roy, Founder and CEO of GXR. “Together with Lottery.com and Sports.com, we are developing the world’s first true sports super app. As global licensing discussions advance, and integration with the Lottery.com family of brands begins, we see a future where fans control their entire live event experience—on the Super App, across all screens, in every corner of the globe.”

About Lottery.com

The Lottery.com Inc. (NASDAQ: LTRY, LTRYW) family of brands — including Sports.com, Tinbu and WinTogether, comprise a unified ecosystem that integrates gaming, entertainment, and sports. Follow the Company on X, Instagram and Facebook.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company’s strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this Form 8-K, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to, expectations related to the investigation of short selling or potential naked short selling, including the Company’s analysis, its ability to take appropriate corrective action, or any potential investigations by regulators; any future findings from ongoing review of the Company’s internal accounting controls; additional examination of the preliminary conclusions of such review; the Company’s ability to secure additional capital resources; the Company’s ability to continue as a going concern; the Company’s ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq; the Company’s ability to regain compliance with the Bid Price Requirement; the Company’s ability to regain compliance with Nasdaq Listing Rules; the Company’s ability to become current with its SEC reports; and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K/A filed by the Company with the SEC on April 22, 2025, and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

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For more information, please visit www.lottery.com or contact our media relations team at press@lottery.com.