What is a Lotto or Lottery Syndicate?

About Lotto Syndicates

There have been news articles about groups of workers or friends creating lottery syndicates. They get lucky and win the lottery or jackpot, splitting it among the members of the pool. There are many examples of this phenomenon. In 2013, 12 UK bus drivers won a £38 million lottery, each member of the pool pocketed over £3 million. As of March 2017, two syndicates in Dublin have cashed in on large lotteries. One syndicate composed of staff in a supermarket won €12.8 million. Another syndicate bought a ticket at a gas station and pocketed a whopping €88 million. The largest payout for a syndicate was in Maryland where the Three Amigos won a third of the $656 million jackpot; they divided the $218.6 million three ways.

 

Are there a maximum number of people or tickets allowed in a syndicate?

If you are looking to create your own syndicate then you can include as many players as you want and buy as many tickets as you want. The greater the number of tickets, the better your chances of winning a prize, although if you have a particularly large amount of people the winnings will be smaller and the syndicate may be harder to manage.

 

These examples make one consider whether joining a syndicate is worth the investment. Syndicates have their benefits and drawbacks compared to buying tickets individually. This article will explore both the advantages and disadvantages of buying lottery tickets in a syndicate.

 

Why Play in an Online Lotto Syndicate?

Syndicates offer one main advantage, pooling one’s resources with those of other players increases the probability of winning the jackpot and other high paying prizes. As an example, if one buys an Oz Lotto ticket individually, they have a 1 in 45.38 million chance of winning, however, if the same individual joined a syndicate that buys 100 tickets weekly, they would increase their chance of winning significantly. Syndicates also allow a player to recoup their investment more frequently. Players in syndicates usually score wins in the lower low paying divisions. This reduces the cost of investing in the lottery.
The most significant drawback of syndicates is pretty obvious. One will never win the full jackpot. Any winnings that are won have to be shared amongst all members of the syndicate. This situation also affects the payouts from medium wins e.g. if a syndicate with 12 members wins $12000, each member would only pocket $1000. Another subtle issue that goes unnoticed is that syndicates reduce the probability of being ahead in a single draw. Playing in a syndicate reduces the chances of winning a large prize for a single draw. This scenario arises because syndicates eliminate variance in one’s lottery play, i.e., one is more likely to win a portion of a large jackpot, but the majority of the time players in the syndicate will lose money at the house edge of the lottery being played. Syndicates also bring in several complications when it comes to prize monies. There have been instances where members bought their individual tickets alongside the syndicate tickets, they then win on their individual tickets, but members of the syndicate claim the wins on the winning ticket. In other instances, loyal members fail to contribute money on the day the syndicate chooses a winning ticket.

 

How to start a Lotto Syndicate?

Starting syndicates is easy. Most lotteries provide provisions for playing using syndicates. Lottery syndicates can also purchase the tickets online or from retailers. The best way to ensure that a syndicate is well run is to choose a syndicate manager. The syndicate manager will collect money from all the members, check the lottery results and keep the members informed of any developments.

How do I join an online syndicate?

Joining an online syndicate is convenient and hassle free, all you need to do is decide whether you want to play Lotto or Thunderball or both of these games, and then consider how many shares you want to buy.

One should also ensure that the group has a syndicate agreement. Syndicate agreements are very important as they detail the rules for the syndicate. The agreement should be a contract that details how winnings are distributed among members and what actions to take when members fail to contribute to the syndicate. Most agreements also specify how the numbers will be drawn. Even if all members of the syndicate trust each other, the agreement is necessary for tax purposes. All members of the syndicate should sign the agreement and retain a copy of the agreement. Because the syndicate manager is the one who buys the tickets or opens an account when playing online, the agreement will be vital when dividing the winnings.

 

Lotto Syndicate Forms and Agreements

The syndicate manager will be performing most of the work in the syndicate. They should collect money from the group members either on the day of the draw or in advance. They must keep records of payment so as to know which members have paid their fair share. After the manager purchases the tickets she should keep the tickets safe as they are required when claiming the prize. The group can protect against theft of the ticket by writing the name and address of one of the members on the back of the ticket. Finally, the manager should not forget the most important part, checking the results of the draw. Some people have won the lottery and stayed for weeks without claiming the prize. The manager should also ensure that all members of the group are legally allowed to participate in the lotto. Some countries have a minimum age requirement for participants in a lotto. Syndicate managers should search online for syndicate packs, which contain tools that ease the burden of managing a syndicate.

 

Download your Syndicate Pack Here

 

Some companies such as GiantLottos and LycaLotto provide an online platform that creates a syndicate for registered players. Players determine the number of shares in the syndicate and then purchase shares in it. The system will then choose numbers for the tickets using a randomized system. Such systems are very transparent because each member gets a notification for every ticket that is purchased.

 

How are prizes paid to syndicates?

Any money won by a syndicate is paid to the group’s manager, as National Lottery rules state that only one player can receive a prize from a winning ticket. The process for claiming prizes is the same as if you were playing on your own, and it is then up to the syndicate manager to distribute the winnings. When you play online, the prizes are automatically paid out to the syndicate members, eliminating the hassle of claiming any prizes in person and then doing the maths to figure out what each syndicate member is owed.

 

Winnings are divided automatically to each member depending on the number of their shares. GiantLottos.com provides syndicates for players in international lotteries such as USA MegaMillions, EuroMillions and USA Powerball. LycaLotto offers tickets for Euromillions, US Powerball, the Irish Lotto and the UK Lotto.