Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 95

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 95
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 example, some jurisdictions prohibit lottery ticket
courier services, while some jurisdictions in the U.S. prohibit charging certain fees to the user, and further still, some jurisdictions
require us to be licensed or registered, which will require us to incur certain costs in connection with the licensing or registration
process. In each U.S. jurisdiction, we may be required to structure our business model and conduct our operations differently to address
the unique features of applicable law.

Many
of the U.S. jurisdictions in which we have historically done business or anticipate doing business in the future require that lottery
game tickets be sold only by licensed retailers and prohibit sale or resale of lottery tickets at prices in excess of the purchase price
designated by the applicable regulatory authority. Because lottery tickets are typically considered bearer instruments, we can purchase
tickets on behalf of our users and customers and charge certain service fees within the limits of the applicable laws in each U.S. jurisdiction.
In most cases, with Virginia being a notable exception, the laws do not specifically prohibit users from engaging our services to purchase
lottery tickets on their behalf. However, certain types of fees are prohibited in certain jurisdictions. For example, Pennsylvania prohibits
“any fee associated with the acquisition or transportation of lottery tickets or shares” and Illinois law prohibits service
charges, handling fees or other costs added to the established price of a ticket. On June 25, 2025, Texas enacted a law to criminalize
the sale of lottery tickets by couriers. In those states and other states with similar prohibitions, we need to structure our business
model to comply with the relevant laws while still endeavoring to operate profitably.

 22 

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item
3. Defaults Upon Senior Securities.

None.

Item
4. Mine Safety Disclosures.

Not
applicable.

Item
5. Other Information.

None.

Item
6. Exhibits.

    Exhibit

    Number
     
    Description
  
    10.1
     
    Amendment and Restatement Agreement in respect of Loan Agreement (Deed), dated as of June 12, 2023, between Lottery.com and Woodford Eurasia Assets Ltd. (incorporated by reference to Exhibit 10.28 of the Annual Report on Form 10-K filed by Lottery.com with the SEC on June 15, 2023).
  
    10.2
     
    Loan Agreement, dated as of July