Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 37

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 37
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 are putting on a focus on developing original sports
content. In recent years, Apple, Netflix, Warner Brothers Discovery, and Amazon have produced original sports content and entered into
agreements to broadcast live sporting events. Their entry into the market could limit our ability to acquire streaming rights for live
sports events. Costs to produce original content may increase to the point where we cannot compete in the sector.

  19  

Consumer
trends in paying for streaming content may have an adverse impact on the Sports. com subscription service.

The
global video streaming market is expected to experience a compound annual growth rate of 17.8% over the next eight years, reaching a
value of $2.4 trillion by 2032. With more than 200 global streaming services, consumers are presented with a wide array of choices
where to spend their discretionary entertainment dollars. Since 2022, 25% of streaming subscribers have cancelled three or more
services. Additionally, 21% of subscribers indicated they intended to cancel at least one additional service in 2024. This trend may
negatively impact our ability to attract new customers or may increase the costs of both customer acquisition and
retention.

Reductions
in discretionary consumer spending could have an adverse effect on our business, financial condition, and results of operations.

Our
business is particularly sensitive to reductions from time to time in discretionary consumer spending. Demand for entertainment and leisure
activities, including lottery play, can be affected by changes in the economy and consumer tastes, both of which are difficult to predict
and beyond our control. Unfavorable changes in general economic conditions, including recessions, economic slowdowns, sustained high
levels of unemployment, and rising prices and inflation, or the perception by consumers of weak or weakening economic conditions, may
reduce our users’ disposable income or result in fewer individuals engaging in entertainment and leisure activities, such as purchasing
lottery games through remote channels. Several factors relating to this economic downturn, including reductions in discretionary income
due to changes in employment conditions, as well as customer preferences regarding discretionary spending habits, have caused and will
likely continue to cause a reduction in consumer spending. As a result, fewer individuals may engage in gaming and lottery activities.
The effect of a decrease in consumer spending on entertainment and leisure activities due to unfavorable market conditions could reduce
the Company’s cash flows and revenues and therefore have a material and adverse impact on our results of operations. As a result,
we cannot ensure that demand for our offerings will remain constant or