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Lottery Syndicates-Pros and Cons
Lottery Syndicates-Pros and Cons
Lottery syndicates are a popular way to play lotteries around the world. A lottery syndicate is simply a group of people who pool their money to purchase lottery tickets. Most lottery syndicates are groups of co workers who purchase lottery tickets collectively. Working together gives members of a syndicate more chances to win any given lottery through the ability to purchase several lottery tickets. The biggest win by a lottery syndicate took place on February 18, 2006 when a group of eight workers at a Nebraska Con Agra plant shared a $365 million dollar Powerball jackpot. The syndicate members agreed to a cash payout of $177,270,519.67 before taxes. In the US taxes can easily account for more than half of a jackpot.
One of the best features of a lottery syndicate is the ability of players to purchase multiple lottery tickets in a manner that is affordable to all members. Any group of people can form a lottery syndicate. Generally the responsibility of purchasing the lottery tickets is delegated to one or more members. Typically syndicate members contribute a set amount towards the purchase of lottery tickets each week. In most cases the person responsible for purchasing the tickets keeps them in a safe place and checks current lottery results. Members can opt to pick their own numbers or use the quick pick option available at lottery retailers.
Lottery syndicates do have their downside. The most obvious negative is the fact that all jackpots must be shared with other syndicate members. The larger the syndicate the lower the individual payout will be. Syndicate members should have some kind of legal written agreement to avoid any misunderstandings of possible legal battles. There are lottery syndicate contracts available online and every syndicate should have some sort of written contract. A contract should detail how the money will be split and should also address tax issues. Informal agreements may seem fine but many a friendship has been destroyed by arguments over money and if the syndicate is a group of workmates the dispute could easily enter the workplace and cause problems.
Thanks to the internet lottery syndicates now have the capability to play several lotteries online. Lottery syndicates can now purchase lottery tickets online avoiding the inconvenience of multiple trips to a lottery retailer. Online lottery players are no longer limited to playing state lotteries although in the US most lottery syndicates typically play Powerball or Mega Millions because of the multimillion dollar jackpots. Joining a lottery syndicate will increase the player’s chances of winning and although the payout will be smaller any payout is better than no payout at all!
Creating a Lottery Syndicate Agreement
Creating a Lottery Syndicate Agreement
Playing the various state lotteries allows participants to dream of sudden wealth while contributing to good causes and programs. In most states lottery revenues are used to support education and provide scholarships for those without the financial means to attend college. In some states lottery profits are used for various social programs and programs for senior citizens. Most states in the US operate lotteries and in Europe there are several national lotteries and the Pan European EuroMillions lottery. Although lottery odds do not favor players there is one strategy players may use to increase their chances of winning; buying more lottery tickets. Many groups of lottery fans in the workplace are forming lottery syndicates. One of the largest lottery jackpots on record was won by a group of seven lucky players in a meat packing plant.
Forming a lottery syndicate is easy but there are several things that need to be addressed to avoid future misunderstandings and conflicts. Lottery experts recommend that all lottery syndicates have an agreement in writing. The agreement should detail all the terms and conditions of the syndicate and should be read and signed by each member. The syndicate agreement is for the mutual protection of all members and should be thoroughly understood. Since the possible winnings may be in the millions it is essential that all syndicate members understand all the provisions of the agreement.
The syndicate agreement does not have to be complicated and does not have to be drawn up by a lawyer. The UK National Lottery actually provides a syndicate kit for players who wish to form a lottery syndicate. A syndicate manager or leader should be appointed. The responsibilities of the manager usually include purchasing the lottery tickets, collecting money from members, checking lottery results and making sure all members are informed. The members then have to decide what numbers are going to be played and how many tickets will be purchased. Some syndicates play a particular set of numbers in each draw while others will use the quick pic option and let the computer at the lottery retailer pick their numbers.
Syndicate agreements should cover the following areas; the names of all the members, the name of the syndicate manager, the numbers to be played, how many tickets will be purchased, which lottery draws will be entered, the contribution of each member and a provision covering what happens if a member fails to contribute. The agreement should be signed by each member and witnessed by an independent outsider. Each member should receive a copy and the original kept in a safe place. Once all this has been accomplished all the syndicate members have to do is dream of the day that they will be splitting up millions!