Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 62

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 62
---

lottery games in interstate or foreign commerce, certain of our operations that are not currently restricted by statute or practice to
a state’s territorial boundaries may be negatively impacted or eliminated. Further, in such event, the DOJ or other federal regulatory
authorities may determine that the manner in which we operate our technology is deemed to be interstate or foreign commerce and accordingly
a violation of such interpretation of the Wire Act. Either event could have a material adverse effect on us or our results of operations,
cash flow, or financial condition, could force us to cease our operations (if any), seek bankruptcy protection, and could further subject
us to litigation, fines and penalties.

  33  

If
the Interstate Wagering Amendment is interpreted or applied to prohibit transmissions to foreign countries, it could have a negative
impact on our business, financial condition, and results of operations.

Various
federal laws prohibit the transportation of lottery tickets, advertisements, and paraphernalia in interstate or foreign commerce or through
the mail, except under certain circumstances. Generally, such laws do not apply to state or charitable lotteries conducted in accordance
with the laws of the state in which such lottery is operated. The Interstate Wagering Amendment, enacted in 1994, sought to close a “loophole”
in the federal laws allowing the sale of lottery tickets across state lines “via computer transaction with no paper crossing state
lines.”

The
Interstate Wagering Amendment specifically provides: “ Whoever... being engaged in the business of procuring for a person in
1 State such a ticket, chance, share or interest in a lottery, gift, [sic] enterprise or similar scheme conducted by another State (unless
that business is permitted under an agreement between the States in question or appropriate authorities of those States), knowingly transmits
in interstate or foreign commerce information to be used for the purpose of procuring such a ticket, chance, share, or interest”
shall have committed an offense under 18 U. S. C. § 1301.

Unless
covered by one of the exceptions, therefore, we are prohibited from transporting lottery tickets across state lines or transmitting information
to be used for the purpose of procuring a lottery ticket for a lottery conducted by a state to a person in another state. “ State”
is defined as “a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession
of the United States.” The definition of “foreign government” on the other