Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 55

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 55
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 and information
systems security and other laws and cause significant legal and financial exposure, adverse publicity, negative impact to our brand and
reputation, and a loss of confidence in our security measures, which could have a material adverse effect on our business, financial
condition, and results of operations and could cause the value of our securities to decline or become worthless. We plan to continue
to devote significant resources to protect against security breaches or we may need in the future to address problems caused by breaches,
including notifying affected users in accordance with regulatory requirements and responding to any resulting litigation, which in turn,
diverts resources from the growth and expansion of our business.

Because
we maintain certain information about our users, we are subject to various privacy laws both in the U. S. and internationally. Our failure
to comply with such laws could expose us to penalties, fines, and litigation, and it could adversely impact our reputation and brand,
any of which could adversely affect our business.

We
are subject to various privacy laws in the U. S. and foreign jurisdictions and we expect that new industry standards, laws and regulations
will continue to be proposed regarding privacy, data protection and information security in many jurisdictions, including the California
Consumer Privacy Act of 2018, which went effective January 1, 2020 and the California Consumer Privacy Rights Act (“ CCPA”),
which went effective on January 1, 2023, which impose obligations for the handling, disclosure and deletion of personal information for
California residents. Virginia and other states have enacted, or are considering enacting, data privacy laws similar to the CCPA. Certain
of these laws, including the CCPA also requires companies to give residents the ability to opt out of the sale of their personal information
and creates potential liability for companies that fail to take adequate steps to protect personal information where that failure results
in a data breach.

  29  

In
the European Union, the General Data Protection Regulation of 2018 (the “ GDPR”) significantly expanded the rules on using
personal data and increased the risks of processing personal data. Some of the new requirements include:

  accountability                                                                                                                         
  enhanced                                                                                                                               
  obligations                                                                                                                            
  constraints                                                                                                                            
  obligations                                                                                                                            
  reporting                                                                                                                              

Other
foreign jurisdictions in which the Company operates, or in which it has it services available, have implemented, or are considering implementing,
data privacy laws and regulations, many of which are similar to the GDPR. Although we attempt to stay current with