Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 47

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 47
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 increase
revenue as a result of these marketing efforts, it may not offset the additional marketing expenses we incur. If our marketing efforts
intended to help grow our business are not effective, we expect that our business, financial condition, and results of operations would
be adversely affected.

If
we fail to detect fraud or misappropriation of proprietary information, including by our users, customers, and employees and contractors,
our reputation and brand may suffer, which could negatively impact our business, financial condition, and results of operations and can
subject us to investigations and litigation.

We
have in the past incurred, and may in the future, incur losses from various types of fraud, which may include the use of stolen or fraudulent
payment card data, claims of unauthorized payments by a user and attempted payments by users with insufficient funds, referral fraud
by affiliates, fraud with respect to background checks, fraud by employees or contractors, including our couriers, and account misappropriation
by bad actors, or phishing. Bad actors use increasingly sophisticated methods to engage in illegal activities involving personal information,
such as identity theft, payment or bank account information theft and the unauthorized acquisition of mobile phone numbers and other
accounts.

  25  

Acts
of fraud may involve various tactics, including collusion. Successful exploitation of our technology could have negative effects on our
product offerings, services, and user experience and could harm our reputation. Failure to discover such acts or schemes in a timely
manner could result in harm to our operations. In addition, negative publicity related to such schemes could have an adverse effect on
our brand and reputation, potentially causing 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. In the event of the occurrence of any such issues with our
existing technology or product offerings, substantial engineering and marketing and other resources, and management attention, may be
diverted from other projects and requirements to correct these issues, which may delay other projects and the achievement of our strategic
objectives.

In
addition, any misappropriation of, or access to, users’ or other proprietary information or other breach of our information security
could result in legal claims or legal proceedings, including regulatory investigations and actions, or liability for failure to comply
with privacy and information security laws, including for failure to protect personal information or for misusing personal information,
which could disrupt our operations, force us to modify our business practices, require us to comply