Is it true that it is mandatory for me to have a valid passport this year before I'm able to play the DV Lottery?
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No, it is not mandatory for you to have a valid passport to play (submit an entry for) the DV Lottery this year.
The requirement for the principal applicant to have a valid, unexpired passport at the time of entry submission was removed starting with the DV-2024 program. This change applies to subsequent programs as well.
However, if you are selected, you will still need to obtain a valid passport before your visa interview to complete the process.
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