Bitsoft, LLC

The Opportunity

Public lotteries and other regulated games exist to raise money for public causes: schools, health care, seniors, and social programs. That model depends on one thing: people must trust that every result is fair. Today, that trust rests on promises, private audits, and official seals that an ordinary person can never verify.

Bitsoft closes that gap. Our software lets anyone confirm, using published data, that an outcome was not manipulated.

Our first focus is Costa Rica's national lottery, which we plan to approach with a formal proposal. We chose it for three reasons. A single public institution runs all lotteries in the country and funds social programs from them, so one agreement would open the entire market. That institution is under pressure: a bill filed in the legislature in May 2026 states that unlicensed online platforms now hold 53 percent of the national market, and none of that revenue reaches public causes. We already have legal counsel and working relationships in Costa Rica. A provably fair product gives the institution something unlicensed platforms cannot offer.

How It Works

Most systems ask people to trust that results were not manipulated. Ours lets them prove it.

In our games, results are not chosen by a person or a stand-alone random number generator. Each result is calculated from a digital fingerprint that includes the game's complete record. That fingerprint can be generated only after the game is complete, so no one, including Bitsoft, can know or influence a result in advance.

How the record is used depends on the game. In our draw games, the winning result is derived from the fingerprint of every ticket in the closed game, so changing a single ticket would change the result. In our contest games, a secret value is committed before play, then combined with the list of participants once the game fills. That value is revealed when the game ends.

After each game, everything needed is published. Anyone can recalculate the result using standard tools and confirm that their entry was counted. Nothing depends on a blockchain or any outside party.

This method is the subject of our pending patent application.

The Business Model

Bitsoft is a technology company. We do not run games, sell to players, or hold players' funds. We license our software to regulated operators, who run the games under their own authority and rules.

In Costa Rica, the national lottery institution would operate our games as its own products. It would license the technology from a Costa Rican operating company, which in turn licenses it from Bitsoft. That company will be formed as part of this raise and will provide local technical support to the institution, escalating any software issues to Bitsoft.

We are paid a share of the revenue each game earns after prizes and retailer commissions. The institution would receive the larger share for its social programs, and the remainder would go to the operating side; that division will be set through negotiation with the institution. Of the operating side, Bitsoft receives 75 percent under its license to the Costa Rican company, which keeps 25 percent for local taxes and operations. The institution assumes no cost or risk in running the games, because prizes and commissions are paid from sales before any division.

Ownership of the Costa Rican company will be decided on the advice of Costa Rican counsel. It will be owned by Bitsoft or, if local requirements make that necessary, by the founder personally. The Costa Rican company's share covers its local taxes and operations, including the costs of the founder's presence in Costa Rica once games are running. Any surplus is held as a capped reserve for unforeseen expenses, and anything above the cap is paid to Bitsoft. If the founder personally owns the company, the arrangement will be fully disclosed.

In future markets, the same software can be licensed to other public lotteries and regulated operators under terms set for each one.

First Market: Costa Rica

Costa Rica's lotteries are run by the Junta de Protección Social [Social Protection Board], a public institution that funds social programs with lottery proceeds. Our proposal offers it three things.

1. More for social programs. Under our proposed terms, the institution's share of each game would be about 17 percent of sales, compared with roughly 12 percent it projected for its flagship Christmas draw. That would be new funding, in addition to what it already earns.
2. An answer to unlicensed platforms. Unlicensed online platforms offer players no protection and pay nothing to public causes. A regulated product that anyone can verify gives people a reason to choose the official option.
3. Income for its vendors. The institution's street vendors could sell tickets and earn commissions, including on the online sales they generate, so moving online would add to their income rather than take it away.

These terms have not been negotiated, and the institution has not yet agreed to adopt our games.

The Game Line

Our flagship is Windfall, a draw game designed so that the top prize is won in every game. A pool of tickets is sold that together covers every possible pick, and the draw happens once the pool sells out. Because someone holds every pick, the jackpot never rolls over unclaimed.

In the configuration prepared for Costa Rica, a game sells 3,118,752 tickets at ₡1,500 each, about $3, with a fixed jackpot of ₡1,500 million, about $3 million, paid in every game. By comparison, the top prize of the institution's 2025 Christmas draw, ₡1,600 million, went unpaid because the winning number was never sold.

Built for players, not against them. Windfall is fairer in ways players can see. The jackpot is paid in every game, so no one buys a ticket for a prize that may never be awarded. A ticket costs less than a single fraction of the national Christmas lottery, yet carries the full jackpot. Every prize level has guaranteed winners in every game, and with Zero Win Protection, every ticket wins: a ticket with no winning picks receives a prize equal to its price. Every result can be checked by anyone.

Windfall's math fixes all prize levels except Zero Win Protection, which varies slightly from game to game. As a result, the total payout for each game is known to within a fraction of a percent before any tickets are sold.

Under our proposed terms, Bitsoft's share of a sold-out game would be about ₡403 million, roughly $805,500, before its own costs. Demand at this scale already exists: the institution's December 2025 consolation draw sold ₡8,181 million in about a week, nearly twice the sales of a complete Windfall game.

Windfall is the first of a line. Three more draw games, Super10, Easy4, and 5:55 LOTTO, are tested and ready, along with Trimorra, a contest game, and further games for future markets. None of them is included in the figures above.

Dollar figures use a planning rate of 500 colones to the US dollar.

Development Status and Roadmap

The platform works today. A demonstration version is available at windfall.bitsoft.llc, where anyone can view the demonstration games and their results. To try the full purchase path, from ticket sale through draw and verification, contact us at [email protected] for a demonstration account. No real money is used.

Built and working: the core game logic, the verification method described above, Windfall and our other draw games, Trimorra, and the server and database systems that run them.

What this raise completes: the applications players and retailers use on the web and on mobile devices, the retailer commission feature, the tools the institution would use to oversee its games, connection to Costa Rica's banking and payment systems, and secure production hosting, including the data warehouse that keeps a permanent record of every game and transaction for audit.

We have tested our games continuously over the past year and a half, and the demonstration site shows them running today. We expect the remaining development and testing to be completed within about 6 months of funding, and design work on the retailer software is already underway. The launch date also depends on when an agreement with the institution is reached.

Use of Funds

The proceeds from this raise will give us an 18-month runway to complete the patent, approach Costa Rica's national lottery institution, and prepare the platform for launch. Once the minimum is reached and the campaign has been open 21 days, all funds raised to that point can be drawn, so work begins without waiting for the full raise.

1. Team and Payroll (55.9% | $559,000): Salaries for the founder and two key team members, set below market until revenue begins, and three developers covering server development, database development, and the applications players and retailers use. Because this software determines prizes and public funds, the work includes extensive testing throughout.
2. Patent and Legal (5.0% | $50,000): Full patent application and international filing, legal counsel in Costa Rica for the formal approach and negotiation, formation of the Costa Rican company, and US securities compliance.
3. Infrastructure and Licensing (10.0% | $100,000): Database licensing, hosting, and the secure systems needed to run regulated games.
4. Costa Rica Market Entry (7.5% | $75,000): Relocating the founder to Costa Rica during negotiations with the institution, team travel as needed, and local setup for technical support.
5. Marketing and Investor Communications (3.5% | $35,000): Campaign outreach and regular investor reporting.
6. Offering and Platform Fees (8.1% | $81,000): Wefunder's success fee and its annual administration fee.
7. Contingency (10.0% | $100,000): A reserve for unexpected costs or opportunities.

If the campaign closes below the full target, funds go first to the patent, legal work, and the formal approach to the institution, with hiring scaled to match.

Our Team

Bitsoft is a small, experienced team.

Steven Swanson, Founder and Chief Executive Officer. Steven has written software since 1980. In 1984, he built his first database program, a handicapping system for horse racing, and he has spent about 30 years in gaming software, including building and operating an online bingo platform. He designed Windfall and its verification method, is a named inventor on the patent application, and leads the platform's development.

Michael Swanson, Chief Technology Officer. Michael brings over 20 years of engineering experience and leads the platform's scalability and cryptographic security. He is a co-inventor on the patent application and contributed the description of how game outcomes are derived.

Jonathan Swanson, Creative Director. Jonathan brings 10 years of design experience and 8 years of public relations experience. He leads Bitsoft's brand and player experience, ensuring that every player can easily verify each draw.

Michael and Jonathan are the founder's sons, and each brings his own independent career experience to the company.

David Best, Technical Advisor. A programmer for over 40 years, David worked for a database company and consulted on database and networking systems for Best Lock. He advises Bitsoft on its platform architecture.

This raise adds three developers covering server and database development, as well as the applications used by players and retailers. As games launch and revenue begins, we will expand the team as needed to meet our support and operating obligations to the institution. During negotiations with the institution, the founder plans to relocate to Costa Rica to lead the effort in person and provide local technical support, with the rest of the team working on-site or remotely as needed.

Investment Opportunity

We are raising up to $1,000,000 to complete our platform, secure our patent, and bring our first games to Costa Rica's national lottery.

Key investment terms:

1. Security type: SAFE + Revenue Share.
2. Total raise: up to $1,000,000, with a minimum of $250,000.
3. Return: investors are paid back 2x their investment.
4. Investor payouts: Each quarter, Bitsoft pays 40% of the revenue it receives, before operating costs, to the investment company Wefunder manages for its investors. That company distributes the funds in proportion to each investor’s contribution until the payback is complete.
5. Expected payback: under our proposed terms, at the full raise, about six sold-out games after launch, and fewer if less is raised.
6. Ownership: investors also receive a SAFE, which gives them the right to future ownership in the company at a $5,000,000 valuation cap. Investors hold their SAFEs through the investment company that Wefunder manages, which appears as a single owner on Bitsoft’s records. At the full raise, the SAFEs together represent up to 20 percent of the company, with each investor receiving a proportional share based on their investment. For example, a $1,000 investment would convert to 0.02 percent of the company. The SAFE converts to ownership when the payback is complete or five years after the campaign closes, whichever comes first. It also converts earlier if the company raises a future financing round or is sold. If the SAFE converts before the payback is complete, the payback continues until it is paid in full.

Why Invest Now

A working product: the platform runs today, and anyone can see it on our demonstration site.

1. Protected technology: our verification method is patent pending, and this raise will fund the full application.
2. A licensing business: we supply technology to regulated operators and never hold players' funds.
3. Known economics: our flagship game’s payouts are fixed by its math, so the cost of every game is known almost exactly before it opens.
4. Built for the public good: designed to increase the share of every sale that funds public causes.
5. Two returns: a 2x payback from revenue, plus future ownership through a SAFE.
6. An early position: this raise comes before our first agreement, at a $5,000,000 valuation cap.

Future Vision

Costa Rica is our starting point, not our limit. Our goal is to make provable fairness the expected standard for regulated games.

1. Build a track record: operate in Costa Rica long enough to show a history of completed, verified games under a real regulator.
2. Expand to new markets: take that record to other national and state lotteries and regulated operators.
3. Grow the game line: offer our tested games, and new ones, to each operator that adopts the platform.
4. Strengthen player protection: build tools that help operators set limits and protect players.

A proven record also opens a further path: licensing our technology to, or partnering with, a large international operator.

Risk Factors

Investing in an early-stage company carries a high degree of risk. You should be prepared to lose your entire investment.

1. Approval by the institution: Costa Rica's national lottery institution has not agreed to adopt our games, and its board must approve any new product. It may decline, and we cannot earn revenue in Costa Rica until it agrees.
2. Mitigation: Our technology is not tied to one country. If the institution declines, we would pursue other jurisdictions and regulated operators, though there is no assurance those efforts would succeed or generate revenue in time to repay investors.
3. A new kind of contract: The institution’s previous technology contracts covered products it already owned, whereas a private company designs and owns Windfall. Approval requires a two-thirds board vote, and an earlier effort to expand private participation in its electronic lottery was blocked during procurement review.
4. Mitigation: The earlier effort sought a larger private role in operating the institution’s electronic lottery. Our offer does not. The institution would operate Windfall as its own product under its own authority, with the technology licensed from a Costa Rican company.
5. Proposed terms have not been negotiated: The revenue split with the institution has not been set, and the payback estimates on this page are based on our proposed terms.
6. Mitigation: Bitsoft's operating share is fixed by its license to the Costa Rican company, so only the institution's share remains open.
7. Demand is unproven: Each Windfall game depends on selling out its full ticket pool, and no Windfall game has yet been sold to the public. Slow sales would delay revenue.
8. Mitigation: The institution's existing sales already exceed Windfall's requirements. Our first-year plan of 15 games requires about ₡1,350 million in weekly sales, roughly 40 percent of the weekly pace of the institution's 2025 Christmas draw, which averaged about ₡3,360 million a week. Even a game every two weeks, our later goal, would require about ₡2,340 million a week. Windfall's ₡1,500 million jackpot is close in size to the Christmas draw's ₡1,600 million top prize, and unlike that prize, it is paid in every game. The institution's street vendors, who earn commissions, also provide a sales network for each game from day one.
9. Law and regulation: Lotteries in Costa Rica are reserved to the national institution, and a pending bill would tighten penalties for operating games of chance without authorization.
10. Mitigation: Bitsoft is only a technology licensor and intends to work solely under the institution's authority, guided by Costa Rican legal counsel.
11. The patent: The patent is pending, not granted. The full application must be filed by October 9, 2027, or the benefit of the provisional filing date is lost, and the patent office may refuse it or grant it in a narrower form. The two inventors currently hold the application, not Bitsoft, and if this campaign fails, both the full application and the assignment may be delayed.
12. Mitigation: Both inventors have agreed to assign the application to Bitsoft, and this campaign funds both the full application and the assignment.
13. The payback: It is unsecured, has no due date, and is paid only from the revenue Bitsoft receives. The company may also defer up to two quarterly payments upon written notice. If the company never earns revenue, no payback is made.
14. Mitigation: Payments are made from revenue before Bitsoft’s operating costs. If the company is sold or wound up before the payback is complete, the remaining payback is owed ahead of the company’s owners.
15. Key person: The founder is also the lead developer, and the company relies heavily on him.
16. Mitigation: Michael Swanson, the company’s chief technology officer and co-inventor, also knows the platform and its design, and this campaign funds three additional developers, spreading that knowledge across a larger team.
17. Development: Delays or higher costs are possible, especially in hiring specialized developers.
18. Mitigation: The platform already works, so the remaining work builds on a tested base, and the budget includes a 10 percent contingency.
19. A smaller raise: If the campaign raises less than its full target, hiring and spending will be scaled down.
20. Mitigation: Funds go first to the patent, legal work, and formal approach to the institution, so the most important steps are protected.
21. Currency: Revenue would be earned in Costa Rican colones, and exchange rates will vary.
22. Mitigation: Dollar figures on this page use a conservative planning rate of 500 colones to the dollar, close to the rate a year ago and weaker than the colón’s recent market rate.
23. Related-party arrangements: Two team members paid from this raise are the founder's sons, and the founder may personally own the Costa Rican company.
24. Mitigation: We disclose these arrangements, and the Costa Rican company's share is limited by the capped reserve described in our business model.
25. No revenue history and no market for shares: The company has never earned revenue, there is no market to sell your interest, and you should expect to hold it for a long time.

FAQs

Is Bitsoft a lottery operator?

No. Bitsoft is a software company. We license our technology to regulated operators, who run the games under their own authority. We do not run games, sell to players, or hold players' funds.

When will investors start receiving payback?

Payback begins after the first quarter in which Bitsoft receives game revenue. Each quarter, Bitsoft pays 40% of that revenue through Wefunder within 45 days after the quarter ends, until payback is complete. Under our proposed terms, full payback at the full raise would require about six sold-out games.

How does the ownership work?

Along with the payback, each investor receives a SAFE that gives them the right to future ownership in Bitsoft, LLC at a $5,000,000 valuation cap. Investors hold their SAFEs through the investment company Wefunder manages, which appears as a single owner on Bitsoft’s records. At the full raise, the SAFEs together represent up to 20 percent of the company, allocated proportionally to each investment. The SAFE converts to ownership when the payback is complete or five years after the campaign closes, whichever comes first, or earlier if the company raises a future financing round or is sold. If it converts before the payback is complete, the payback continues until it is paid in full. Investors then hold their ownership and share in the company’s long-term growth.

Is Costa Rica the only market?

No. Costa Rica is our first market, chosen because one agreement opens the whole country. Our technology works for any national or state lottery and any regulated operator, and a track record in Costa Rica is how we open those doors.

What makes your technology different?

Anyone can verify every result using published data, without trusting the operator or us. Our flagship game pays its jackpot in every game, and its payouts are fixed by its math, so the cost of every game is known almost exactly before it opens. Our verification method is patent pending.

Why does proof matter if lotteries are already audited?

Audits check the process, but they cannot prove a single result. In the United States, a security director at a multi-state lottery association secretly altered the software that selected winning numbers. He used it to rig jackpots in several states for years before being caught and convicted. Years earlier, insiders rigged a televised state draw by tampering with the drawing balls. In both cases, the people involved were trusted, and audits and official seals did not stop them. Bitsoft removes the hidden step they exploited. The result comes from the fingerprint of the complete, closed game record, so there is no secret generator or physical device for anyone to change, including us. Anyone can verify the result against published data.

Can I see it working?

Yes. Our demonstration site is at windfall.bitsoft.llc. Contact [email protected] for a demonstration account to try the full purchase path. No real money is used.