Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 77

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 77
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 state Attorneys General, as well as those levied by foreign regulators. In addition to fines, penalties for failing to comply
with applicable rules and regulations could include criminal and civil proceedings, forfeiture of significant assets or other enforcement
actions. We could also be required to make changes to our business practices or compliance programs as a result of regulatory scrutiny.

Additionally,
our payment processors require us to comply with payment card network operating rules, which are set and interpreted by the payment card
networks. The payment card networks could adopt new operating rules or interpret or reinterpret existing rules in ways that might restrict
or prohibit us from using certain payment methods in providing certain offerings to some users, be costly to implement or difficult to
implement. We have agreed to reimburse our payment processors for fines they are assessed by payment card networks if we or our users
violate these rules. Any of the foregoing risks could adversely affect our business, financial condition and results of operations.

Our
technology contains third-party open-source software components, and failure to comply with the terms of the underlying open-source software
licenses could restrict our ability to provide our offerings.

Our
technology contains software modules licensed to us by third-party authors under “open source” licenses, including the distributed
ledger technology, which we currently use and intend to continue to use in our Platform. Use and distribution of open-source software
may entail greater risks than use of third-party commercial software, as open-source licensors generally do not provide support, warranties,
indemnification or other contractual protections regarding infringement claims or the quality of the code. In addition, the public availability
of such software may make it easier for others to compromise our technology.

Some
open-source licenses contain requirements that we make available source code for modifications or derivative works we create based upon
the type of open-source software we use or grant other licenses to our intellectual property. If we combine our software with open-source
software in a certain manner, we could, under certain open-source licenses, be required to release the source code of our software to
the public. This would allow our competitors to create similar offerings with lower development effort and time and ultimately could
result in a loss of our competitive advantages. Alternatively, to avoid the public release of the affected portions of our source code,
we could be required to expend substantial time and resources to re-engineer some or all of our software.

  41  

Although
we monitor our use of open-source software to avoid subjecting our technology to conditions we do not intend, the terms