Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 22

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1
Chunk 22
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 operations in markets in which
we contemplate expansion. Such licensure may impose additional obligations on us and our operations, which may include continuous disclosure
to, and investigation by, the applicable regulatory authority into the financial stability, integrity, and business experience of the
Company, its affiliates, and their respective significant stockholders, directors, officers, and key employees. In markets in which we
have not previously operated or in newly regulated markets, licensing regimes may impose licensing requirements or conditions with which
we have not previously been required to comply, which may include locating technical infrastructure within the relevant territory, establishing
real-time data interfaces with the regulatory authority, implementing additional consumer protection and privacy measures, or additional
approvals or certifications of our technology, all of which may present operational challenges and material costs. Certain stockholders
may be required to be licensed.

  11  

To
the extent that any stockholder, director, officer, or key employee is required to submit to required background checks and provide disclosure,
and such individual fails to do so, or they or we do not successfully do so, this may jeopardize the grant of a license, provide grounds
for termination of an existing license, or result in the imposition of penalties. Generally, any person or entity who fails or refuses
to apply for a governmental license, finding of suitability, registration, permit, or approvals within the prescribed period after being
advised by a competent authority that they are required to do so may be denied or found unsuitable, as applicable, which may result in
our determining or being required to sever our relationship with such person or entity. Further, we may be subject to disciplinary action
or suffer revocation of licensure if, following notification that a person or entity is disqualified or unsuitable, we (a) pay them any
dividend or interest upon our shares; (b) allow them to exercise, directly or indirectly, any voting right conferred through the shares
they hold; (c) pay them remuneration in any form for services rendered or otherwise; or (d) if required, fail to pursue all lawful efforts
to require them to relinquish their shares.

Furthermore,
our Charter provides that any of our securities held by a person or entity that is disqualified or unsuitable, as such terms are defined
in our Charter, are subject to redemption by us as and to the extent required by a regulatory authority or deemed necessary or advisable
by our Board in its sole and absolute discretion. If a gaming authority requires the Company,