Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 16

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1
Chunk 16
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 recommence our operations
and we may need to permanently cease our operations”

Sports. com

In
December 2021, we finalized the acquisition of the domain name https://sports. com and on November 15, 2022, we formed a wholly-owned
subsidiary called Sports. com, Inc., a Texas corporation (“ Sports. com”). Subsequently, Sports. com announced a partnership
with the Saudi Motorsports Company, which enabled the Company to roll out the Sports. com brand at the IFA World Cup decider at the end
of November 2022. In December 2022, Sports. com signed an agreement with Data Sports Group, GmbH (“DSG”), which provided
Sports. com the exclusive North American distribution rights for sports data products offered and maintained by DSG (the “ DSG Data”).
The DSG Data is being sold through the same sales resources and sales channels as the lottery data offered by TinBu. On July 23, 2023,
DSG exercised its right to terminate the exclusive distribution rights due to Sports. com not meeting its contractual obligations.

Plans
for Recommencement of Company Operations

As noted above, since the 2022
Operational Cessation, the Company has had minimal day-to-day U. S. operations and has primarily focused on restarting certain of its core
businesses. The Company has developed a phased plan to recommence its operations.

Phase 1 - Resume B2C
Platform Operations. The Company believes that it will be in a position to relaunch its B2C Platform by the summer of 2025. As
of the date of this Report, the Company expects that it will initially relaunch its B2C Platform on a limited geographic basis in
both the US and Internationally for a period of time before rolling it out to multiple jurisdictions. The Company plans to limit the
rollout in order to give it additional time to properly vet and confirm compliance with local, state and federal rules related to
ticket procurement and distribution. For more information, see “ Item 1A. Risk Factors - Regulatory and Compliance Risks - A
jurisdiction may enact, amend, or reinterpret laws and regulations governing our operations in ways that impair our revenues, cause
us to incur additional legal and compliance costs and other operating expenses, or are otherwise not favorable to our existing
operations or planned growth, all of which may have a material adverse effect on us or our results of operations, cash flow, or