Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 81

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 81
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. In particular, we may have access to fewer business opportunities and
our international operations may be negatively impacted.

As
a result of the intended growth of the international scope of our operations and our corporate and financing structure, we may become
subject to taxation in, and to the tax laws and regulations of, multiple jurisdictions. Adverse developments in these laws or regulations,
or any change in position regarding the application, administration or interpretation of these laws or regulations in any applicable
jurisdiction, could have a material adverse effect on our business, financial condition and results of operations. Furthermore, changes
in or to the interpretation of the tax laws or tax treaties of the countries in which we operate may adversely affect the manner in which
we have structured our business operations and legal entity structure to efficiently realize income or capital gains and mitigate withholding
taxes and may also subject us to tax and return filing obligations in such countries that do not currently apply to us. Such changes
may increase our tax burden or may cause us to incur additional costs and expenses in compliance with such changes. In addition,
the tax authorities in any applicable jurisdiction may disagree with the positions we have taken or intend to take regarding the tax
treatment or characterization of any of our transactions, including the tax treatment or characterization of our indebtedness. If any
applicable tax authorities were to successfully challenge the tax treatment or characterization of any of our transactions, it could
result in the disallowance of deductions, the imposition of withholding taxes, the reallocation of income or other consequences that
could have a material adverse effect on our business, financial condition and results of operations.

In
addition, the U. S. Congress, the U. K. Government, the Organization for Economic Co-operation and Development (the “ OECD”),
and other government agencies have had an extended focus on issues related to the taxation of multinational corporations. Further, the
introduction of a digital services tax, such as the U. K. digital services tax introduced with effect from April 1, 2020, may increase
our tax burden, which could adversely affect our business, financial condition and results of operations. Finally, the international
scope of our business operations could subject us to multiple overlapping tax regimes that can make it difficult to determine what our
obligations are in particular situations.

  44  

Fluctuating
foreign currency and exchange rates may negatively impact our business, results of operations, and financial position.

Due
to our foreign operations, a portion of our business is