Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 20

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1
Chunk 20
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LC issued a new opinion (the “2019 Opinion”) that concluded that the restrictions
in the Wire Act on the transmission in interstate or foreign commerce of bets and wagers was not limited to sports gambling but applied
to all bets and wagers, including those involving state lotteries. Reinterpretation of the federal Wire Act by the OLC threatened certain
online lottery sales, leading to litigation in which the First Circuit Court of Appeals (the “ First Circuit”) which determined
that the Wire Act applies only to interstate wire communications related to sporting events or contests and not lottery games. Finding
that the declaratory judgment was an adequate remedy at law, however, the First Circuit declined to set aside the 2019 Opinion under
the Administrative Procedure Act. In addition to the First Circuit’s decision, the U. S. Circuit Court of Appeals for the Fifth
Circuit (the “ Fifth Circuit”) has previously held the Wire Act prohibitions apply only to sports gambling. Because many of
the Company’s operations occur outside the jurisdictions of the First Circuit and Fifth Circuit, and because the First Circuit
did not set aside the 2019 Opinion, we are still monitoring the potential impact of the 2019 Opinion on our business. For more information,
see “ Item 1A. Risk Factors - Regulatory and Compliance Risks - If there is a final determination on the applicability of the
Wire Act to our operations and it is determined or codified that the Wire Act extends to transmission of 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, which may have a material adverse effect on our business, financial conditions,
and results of operations.”

  10  

Separately,
some states prohibit the use of courier services and the sale of online lottery tickets, while other states limit the charges that we
can impose and collect. When such offerings are operational, we only purchase lottery games on behalf of our users and customers where
our services are permitted and in accordance with applicable laws. Per jurisdiction, the scope and interpretation of the laws that are
or may be applicable to our services and fees are subject to interpretation and may change.

Our
compliance with federal, state, territorial and local laws is based on our interpretation of existing applicable laws regarding lottery
services such as ours. We have obtained legal advice and notified certain lottery authorities in U. S. jurisdictions where we do business
of the services