Company: LTRYW
Filing Date: 2025-12-10
Form Type: PRE 14A
Source: 0001493152-25-027089
Chunk: 36

Company: Lottery.com Inc.
Filing Date: 2025-12-10
Form: PRE 14A
Chunk 36
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ii) it has a valid election in effect under applicable U.S. Treasury Regulations to be treated as a United 
 States person for U.S. federal income tax purposes.                                                                                   |

| 23 |

Tax Consequences of aForward Stock Split

A Forward
Stock Split should constitute a “recapitalization” for U.S. federal income tax purposes. In general, the U.S. federal income
tax consequences of a Forward Stock Split will vary depending upon whether a U.S. Holder receives cash for fractional shares or solely
an increased number of shares of Common Stock in exchange for its pre- Forward Stock Split shares of Common Stock. A U.S. Holder
that receives solely an increased number of shares of Common Stock generally will not recognize gain or loss in a Forward
Stock Split. A U.S. Holder’s aggregate tax basis in the increased number of shares of Common Stock should equal the U.S.
Holder’s aggregate tax basis in its pre-Forward Stock Split shares of Common Stock and such U.S. Holder’s holding
period in the increased number of shares will include the holding period in its pre-Forward Stock Split shares of Common Stock
exchanged. Treasury Regulations provide detailed rules for allocating the tax basis and holding period of the shares of Common Stock
surrendered to the shares of Common Stock received in a recapitalization pursuant to a Forward Stock Split. U.S. Holders
should consult their tax advisors as to application of the foregoing rules where shares of Common Stock were acquired at different times
or at different prices.

No gain or loss will be recognized by Lottery.com as a result of the proposed Forward Stock Split.

Information Reporting and Backup Withholding

A holder of shares of Common Stock may be subject to information reporting and backup withholding on cash paid in lieu of fractional shares in connection with a Forward Stock Split. To avoid backup withholding, each holder of shares of Common Stock that does not otherwise establish an exemption should provide its taxpayer identification number and comply with the applicable certification procedures. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules generally will be allowed as a refund or credit against a U.S. Holder’s U.S. federal income tax liability, provided the required information is timely and properly furnished to the Internal Revenue Service. Holders of shares of Common Stock should consult their tax advisors regarding their qualification for an exemption from backup withholding and the procedures for obtaining such an exemption, as well as the procedures for obtaining a credit or refund if backup withholding is imposed.

The preceding discussion is