Lotteries provide the regular individual a glimpse of hope to get rich and solve all of their financial worries. However, individuals recognize that the more lottery tickets you hold, the better your odds of winning are.
For the UK National Lottery, there are around 14,000,000 potential combinations, thus if you have one line or one ticket, you have one 1 in 14,000,000 chances of winning. If you have 1000 tickets, you have 1 in 14,000 possibilities of winning, thus your odds rise dramatically. But acquiring 1000 tickets is beyond most people’s means. Who could afford $1000 a week? So the answer is to join a group, distribute the cost, and share the benefits of higher odds.
If you were in a 100 person group paying $10 a week into the pool and won $10,000,000, you would expect each win roughly $100,000. Not bad for your $10 investment.
When you form a group, you should set things up properly because there will always be debates and arguments especially involving members who leave or join.
Here are some suggestions:
Put everything in writing. Set up a contract explaining the rules of your group and get everyone to sign it. All members should have a copy, give a copy to a solicitor or independent adjudicator and display a copy where you can all see it. Here are some things you should include in your contract.
Decide on the maximum number of members you let into your group.
If you will play the same numbers each time, ensure they are specified in the contract.
Decide who will be responsible for filling out the tickets and putting the tickets on each week. Include that in the contract and create a procedure to deal with occasions when this person is unavailable. The ticket stubs should be made available by these person(s) as proof that the tickets were put on.
Decide how and who will collect weekly subscriptions.
Decide what will happen if someone misses a subscription – will they be eliminated from a win, or will others make up their subscription? For example, if someone misses a specified number of consecutive subscriptions, you could want to dismiss them from the group and allow someone else in. – Whatever you decide, ensure it is in the contract.
Decide what happens with minor awards. Do they get carried over and stored for distribution later (for example, Christmas), or are they shared out when the amount reaches a specific threshold. Or do you play additional lines when there’s a rollover, for example?
Check your local tax rules to see whether you need to disclose the group for tax purposes.
Check with your employer to ensure you have authorization to operate a group on their grounds and in their time.
Decide how people can leave and join your group. For example, if you have a maximum of 20 persons authorized, you can have a waiting list of people who wish to join.
This is by no means an entire list, but any contract is better than no contract at all.
The most usual dispute is when someone has missed a payment, and the group has a win that week. There will be debates over whether that person should be included in the payout if it is the jackpot. Decide now, document it, and get everyone to sign up to the rules. Even if you have been running a group for years, it is not too late to establish a contract. Get everyone together, discuss and agree on the rules, get them down on paper and get everyone to sign up to them.
The same applies to family groups. To avoid any rifts and conflicts, make sure everyone knows the rules.