I understand that at the initial stage, the buyback will help fill the jackpot fund, as well as stimulate the growth of the token. But this will be only once and the lottery will be held regularly and managed by a smart contract.
How can buybacks be done if this project is meant to operate as a nonprofit business?
The most of the amount raised during ICO (about 90%) will be spent for the first Ticket token buyback. This will form the initial jackpot
You first sell tickets to launch the project and then you use 90% of the money to buy back the tickets? I am confused.
That's a very right question to ask and you can find everything in the Whitepaper:
"To form the initial prize fund, tokens will be purchased back from holders, and all funds collected in the token sale, minus funds allocated for development and promotion, will be channeled towards this.
The buyback will start a month before the first Neogame draw, and will continue until all funds are spent.
We expect token buyback to significantly influence the TKT exchange rate, which will lead to an increase in the value of the prize pool, which may be many times higher than the sum of the funds spent on its formation, and the tokens that remain in circulation.
In this way, Neogame can create one of the largest jackpots in the history of lotteries."
The link to the Whitepaper: https://neogame.io/wp-content/uploads/2018/09/Neogame_eng_10Sep18.pdf
