EARTHX® CORPORATION LTD. — Ohio LLC
IMPORTANT LEGAL NOTICE
This document is for informational purposes only and does not constitute legal advice. EARTHX® Corporation makes no representations regarding the legality of participation in any specific jurisdiction. Consult legal counsel in your jurisdiction before participating.
For XP2P® EcoSystem regulatory information, see the XP2P® Regulatory Disclosure.
XLOTTERY.ai represents a paradigm shift in lottery platforms. This disclosure analyzes the legal framework, win rate mathematics, and regulatory compliance of XLOTTERY.ai and its flagship product LOTTERII™. Key points: 60-75% win rates, 98.3% payout, position-by-position matching, blockchain verification, 5 patents pending.
Under U.S. law, gambling requires three elements simultaneously:
| Element | Traditional View | XLOTTERY.ai Position |
|---|---|---|
| Prize | Money or valuable consideration | Present — participants can win prizes |
| Chance | Random outcome beyond control | Partially mitigated by skill-based elements and strategy |
| Consideration | Payment to participate | Entry fee structure with promotional redistribution model |
Under the traditional three-element test (FCC v. American Broadcasting Co., 347 U.S. 284), all three elements must be present for an activity to constitute gambling.[1]
Traditional state-run lotteries retain 40-60% of ticket revenues for government programs, administration, and retailer commissions. XLOTTERY.ai returns 98.3% of all participant funds as prizes, retaining only 1.7% for platform operations.
| Metric | Traditional Lottery | XLOTTERY.ai |
|---|---|---|
| Win Rate (any prize) | ~1 in 24 | 60-75% |
| Jackpot Odds | 1 in 292,000,000 | 1 in 6 to 1 in 2,500 |
| Platform Retention | 40-60% | 1.7% |
| Expected Value per $1 | $0.40-$0.60 | $0.983 |
| Payout Ratio | 40-60% | 98.3% |
XLOTTERY.ai is structured as a promotional redistribution platform where participant funds are pooled and redistributed as prizes. This model emphasizes the promotional and entertainment aspects rather than traditional gambling mechanics.
The platform incorporates elements consistent with lawful sweepstakes operations, including no purchase necessary alternatives where applicable, clear disclosure of odds, and transparent rules and conditions.[3][5]
LOTTERII incorporates skill-based elements including number selection strategy, tier selection, and timing decisions. These elements may reduce the pure “chance” classification under the predominance test used by many jurisdictions.[10][12]
XLOTTERY.ai represents a fundamental paradigm shift in how lottery platforms operate. By returning 98.3% of funds to participants and using AI to optimize matching, it creates a mathematically superior experience compared to any traditional lottery in existence.
LOTTERII IS NOT A TRADITIONAL LOTTERY
LOTTERII™ is an AI-engineered promotional redistribution platform with blockchain verification.
| Tier | Entry Fee | Win Odds | vs Powerball |
|---|---|---|---|
| SPARK | $3 | 1 in 6 | 48,666,667x better |
| TITAN | $5 | 1 in 20 | 14,600,000x better |
| BEAST | $7 | 1 in 100 | 2,920,000x better |
| LEGEND | $10 | 1 in 500 | 584,000x better |
| IMMORTAL | $15 | 1 in 2,500 | 116,800x better |
RISK WARNING
YOU MAY LOSE ALL MONEY YOU CONTRIBUTE
LOTTERII™ involves financial risk. While our Platform returns and redistributes 98.3% of all Player money, and our winning odds are 8,900-121,700x better than traditional lotteries:
DO NOT PARTICIPATE WITH MONEY YOU CANNOT AFFORD TO LOSE
Lottery participation involves risk of loss. Most participants will not win jackpots. Only participate with funds you can afford to lose.
Gaming regulations vary by jurisdiction. Some jurisdictions may prohibit participation. It is your responsibility to ensure participation is legal in your jurisdiction.
Cryptocurrency values fluctuate. The USD value of winnings may vary based on cryptocurrency market conditions.
While we strive for 100% uptime, technical issues may occasionally affect platform availability or draw timing.
EARTHX® Corporation Ltd. is committed to operating XLOTTERY.ai and LOTTERII™ in full compliance with applicable federal and state laws.
Analysis of applicable laws in each jurisdiction where the platform operates, with geo-restriction of access where necessary.
Registration and bonding in states that require it for promotional platforms (e.g., Florida, New York, Rhode Island).[13]
Clear and conspicuous disclosure of all terms, odds, prize structures, and legal limitations.
Verification that all participants meet minimum age requirements (18+).
Appropriate tax reporting (Form 1099) for prizes exceeding applicable thresholds.[14]
LOTTERII™ is pursuing licensing under the Malta Gaming Authority (MGA), one of the world’s most respected gaming regulators. Malta provides a comprehensive regulatory framework for blockchain-based gaming platforms.
LOTTERII™ has been structured to avoid classification as a security under the SEC v. W.J. Howey Co. test. Participants receive immediate consumptive utility (entry into prize pool), not an investment contract.
Participants receive gaming outcomes based on matching and skill-based elements, not returns derived from the efforts of others.
LOTTERII does not require recruitment. There is no inventory purchasing, mandatory sales quotas, or requirement to build a downline network.
Revenue is generated through legitimate gaming operations, not through continuous recruitment. Prize pools are funded by entry fees, not new member deposits.
Affiliate commissions (max 1.5% total) are deducted from winner payouts, not entry fees. This ensures 100% of entry fees go to the prize pool.
When a participant wins, up to 1.5% of the payout is allocated to referral commissions for the winner’s upline affiliates. Entry fees remain untouched.
Classic: 3 levels, Premium: 5 levels, VIP: 7 levels. Commission percentages decrease at each level, ensuring the total never exceeds 1.5%.
Commissions are triggered only by actual gaming wins, not by recruiting. Participants can fully engage without ever referring another person.
LOTTERII™ is committed to responsible gaming: 18+ only, self-exclusion options, deposit limits, activity tracking, and support resources for problem gambling.
If you or someone you know has a gambling problem, please seek help.
All draw results are blockchain-verified. Prize pool allocations are transparent. The 1.7% fee is clearly disclosed. Winner announcements are public. RNG is provably fair with published seeds and cryptographic proofs.
[1] FCC v. American Broadcasting Co., 347 U.S. 284, 290 (1954).
[2] See 38 C.J.S. Gaming § 5 (2022).
[3] See BrandMovers, The Complete Legal Guide For Running Sweepstakes (2024).
[4] 18 U.S.C. § 1307.
[5] See ShortStack, No Purchase Necessary Law (June 26, 2022).
[6] See University of Nebraska-Lincoln, Math In Society: Expected Value.
[7] See Portland Community College, Math In Society: Expected Value.
[8] See Kinnaird, Reconsidering the Legal Definition of Gambling, 109 Va. L. Rev. 963 (2023).
[9] See Wikipedia, Lottery.
[10] See Thompson Coburn LLP, Is It a Game of Chance or a Game of Skill? (Dec. 5, 2024).
[11] See RTM.com, No Purchase Necessary Laws and Your Sweepstakes (Oct. 27, 2025).
[12] See Skillz, The Legality of Skill Gaming.
[13] See Sideman & Bancroft LLP, Contests and Sweepstakes 101 (May 30, 2024).
[14] See 26 C.F.R. § 31.3402(q)-1.
Important Notice
This regulatory disclosure is provided for informational purposes. It does not constitute legal or financial advice. Participants should ensure participation is legal in their jurisdiction.
For comprehensive XP2P® EcoSystem regulatory information, see the XP2P® Regulatory Disclosure.
© 2023-2026 EARTHX® Corporation. All rights reserved.
18+ only. Participate responsibly. Not available in all jurisdictions.