Lottery syndicates have become an increasingly popular way of playing the various lottery games. Syndicates are set up through places of work, between groups of friends, and through organisations and groups as well as through specialist syndicate organisations. What can start at as harmless and enjoyable fun designed to increase your chances of winning, though, could quickly become sour.
- What happens if one or more members of the syndicate fail to pay their share and you win the jackpot?
- Should a brand new syndicate member be entitled to the same share of the prizes as a syndicate member that’s been playing for several years?
These are just two potential problems that your syndicate could face if you don’t have a lottery syndicate agreement in place. A lottery syndicate agreement not only formalises the agreement for all members but it helps to keep track of who is and who is not part of your syndicate and it can even help prevent the majority of group members from having to pay tax on their share of the winnings.
Formalise Your Syndicate
A signed lottery syndicate agreement essentially becomes a legally binding document. Every member that signs the agreement is bound by the terms and conditions that it sets out. This means that you can prevent disagreements before they occur by ensuring that everybody knows the rules. You can add any rule or stipulation to the agreement as long as all members agree and complete their lottery syndicate agreement.
Pay To Play
The lottery syndicate agreement should, first and foremost, contain the names of syndicate members as well as their chosen numbers and the amount that each player agrees to pay. You can determine whether each player is entitled to an equal share or whether players can pay more and subsequently enjoy a greater share of any winnings.
Sharing The Winnings
Don’t forget to include information on how the winnings will be used. While it is most common for syndicates that offer an equal share to every member to equally distribute each week’s winnings, some syndicates may choose to put a share of the money towards the Christmas party or to use a certain amount of winnings to pay for the next set of tickets.
Stipulate The Draws
Include the draws that the lottery syndicate agreement is to be used for. With so many different lottery draws throughout the week this is especially important so decide whether you will be playing Wednesday, Saturday, EuroMillions, or even Daily Play and include this in your agreement.
Also include a rule that governs when payments must be made and the consequence for failing to make payment by that time. If you accept payments up until the day of the draw (or Friday in the case of the Saturday draw) then you may choose to exclude anybody that fails to pay by this time from that particular draw.
The Lottery Syndicate Agreement Manager
Finally, you should include a lottery syndicate manager. This person will ultimately be responsible for all lottery syndicate matters including collecting moneys and prizes, distributing the winnings, and also maintaining and updating the agreement. The agreement should be updated with the addition of new members, removal of old members, and any changes to the agreement specifics
Download a Lottery Syndicate Agreement Form here