Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 61

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 61
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 to distribute lottery products, including scratch ticket games, through numerous
channels that included web applications, mobile applications, and social media.

In
January 2019, the OLC issued the 2019 Opinion, which 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. Multiple lawsuits were filed challenging the validity of the 2019 Opinion.

On
June 3, 2019, the federal district court in New Hampshire determined that the Wire Act applies exclusively to sports gambling and set
aside the 2019 Opinion. The New Hampshire federal district court declined, however, to issue a nationwide injunction in the case. On
August 16, 2019, the DOJ appealed the New Hampshire federal district court’s decision to the First Circuit.

On
January 20, 2021, the First Circuit affirmed the District Court’s decision, determining that the Wire Act applies only to interstate
wire communications related to sporting events or contests. Finding that the declaratory judgment was an adequate remedy at law, the
First Circuit declined to set aside the 2019 Opinion under the Administrative Procedure Act. In addition to the First Circuit’s
decision, the Fifth Circuit has previously held the Wire Act prohibitions apply only to sports gambling.

On
September 15, 2022, the United States District Court for the District of Rhode Island entered an order siding with the First Circuit’s
interpretation of the Wire Act and holding that “the Wire Act applies only to ‘bets or wagers on any sporting event or contest.”

Notwithstanding
the above, currently, there is no definitive ruling from the U. S. Supreme Court on the issue, and the courts in other U. S. Circuits might
take a different position. Because many of the Company’s operations occur outside the jurisdiction of the First Circuit and the
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. If courts outside the First Circuit, Fifth Circuit or the U. S. Supreme Court take a different position
on the applicability of the Wire Act to our operations, the Wire Act may have a material adverse effect on our business, financial conditions,
and results of operations. Should it ultimately be determined or codified that the Wire Act extends to transmission of