Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 59

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 59
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 operations, cash flow, or financial condition.

There
have been several proposed state and federal bills to prohibit or restrict interactive or online lottery sales, some of which have been
successful. For example, in 2015, the Minnesota legislature passed an amendment to the state’s lottery law prohibiting the sale
of scratch lottery tickets over the Internet. In certain jurisdictions, the sale of lottery tickets through couriers is expressly unlawful.
Laws restricting the sale of lottery tickets via the Internet, through mobile networks or by courier, or that otherwise materially impact
our operations, including those relating to sweepstakes, may be proposed or passed in the future at either the federal or state level
or by foreign governments. Any proposal or passage of such laws may reduce our revenues or require us to expend a significant amount
of our funds and resources and incur additional legal and other expenses, thereby creating a material adverse effect on us or our results
of operations, cash flow, or financial condition.

Changes
in the executive branches of government in the U. S. as well as in foreign countries, may affect policies on lotteries and mobile gaming.
For example, variations in the interpretation of The Federal Wire Act of 1961 (the “ Wire Act”) by the Office of Legal Counsel
(the “ OLC”) of the Department of Justice (the “ DOJ”) have had a material impact on the online gaming and lottery
industry within the U. S. For more information, see “ 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.

We
cannot ensure that our activities or the activities of those third parties with whom we do business will not become the subject of regulatory
or law enforcement proceedings. Further, lottery regulatory associations, including the Multi-State Lottery Association (the “ MUSL”),
and certain lottery entities both domestically and internationally exercise significant authority regarding the means and manner in which
the lottery and its products are marketed and sold as well as the equipment, technology and services deployed by retailers and resellers
of such lottery products. Our activities or the activities of those third parties with whom we do business may become the subject of
further inquiries, investigations