Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 19

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1
Chunk 19
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State
and federal laws in the U. S. govern and, in some cases, limit our business practices. For example, the Interstate Wagering Amendment
to 18 U. S. C. § 1301 limits our ability to purchase lottery games for a user located in one state from a lottery authority located
in another state, except under certain limited circumstances, such as where the lottery authorities in the respective states allow such
sales. Therefore, when such offerings are operational, for our users located within the U. S., we only purchase lottery games for users
who at the time are physically situated within the U. S. state or jurisdiction where the lottery game they are purchasing is being conducted,
unless an exception were to be authorized by the applicable lottery authorities. For more information, see “ Item 1A. Risk Factors
- Regulatory and Compliance Risks - If the Interstate Wagering Amendment is interpreted or applied to prohibit transmissions to foreign
jurisdictions, it could have a negative impact on our business, financial condition, and results of operations.”

In
addition, the U. S Wire Act of 1961 provides that anyone engaged in the business of betting or wagering that knowingly uses a wire communication
facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or
wagers on any sporting event or contest, or for the transmission of a wire communication that entitles the recipient to receive money
or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, may be fined or imprisoned, or
both. The Wire Act provides, however, that it shall not be construed to prevent the transmission in interstate or foreign commerce of
information for use in news reporting of sporting events or contests, or for the transmission of information assisting in the placing
of bets or wagers on a sporting event or contest from a state or foreign country where betting on that sporting event or contest is legal
into a state or foreign country in which such betting is legal. In late 2011, the Office of Legal Counsel (the “ OLC”) in
the U. S. Department of Justice (the “ DOJ”) issued an opinion that concluded the conduct prohibited by the Wire Act was limited
to sports gambling; however, in January 2019, the O