Are Lottery Syndicates Really Worth The Effort?

It is widely appreciated that a lottery syndicate is about the wisest way to participate in any lotto if you are searching for a way to enhance your probability of sharing the jackpot. In reality, more than a quarter of all lotto jackpot wins are secured by lottery syndicates. These lottery syndicates are typically set up by groups of work colleagues or friends who have the one aim of improving their chances of winning the lottery. Playing together in this way gives each member of the syndicate a greater number of winning chances while at the same time ensuring each person's spend is kept to a minimum.

Playing the lottery as a member of a syndicate can come with a considerable odds benefit markedly if the syndicate has a larger amount of people participating. In spite of this, being a syndicate member does have its downside.

The first and almost certainly the most evident negative side of a syndicate is the fact that all prize money is split between all players in the syndicate equally. Therefore, the more syndicate members there are, the less cash each of these members will obtain. As a result, a sizable lottery syndicate win may only create sufficient prize money for each member to pay for a holiday or a new dining room suite; but definitely not sufficient to give up your job and buy a Pacific island! As long as every member is aware of this eventuality then everybody should be content.

The second obstacle with lottery syndicates directly relates to the point made above. Stories can sometimes be found in the newspapers regarding a syndicate member(s) who is loathed to distribute the prize money to colleagues and instead tries to keep it. This can indeed be a massive problem if the syndicate has been formed without using a legally binding syndicate contract. If this is the set of circumstances, each of the aggrieved members has then got to show in legal terms that they have been conned. There have also been instances where a syndicate member has lost their share of a syndicate payout due to late or non payment of their entry fee. Situations like these often lead to legal action.

The third setback that may happen if no formal syndicate agreement is in place is that of inheritance tax issues. If the head of the syndicate collects the prize money and then "gifts" each member their equal share, then this tax could become a reality for every syndicate member.

Problems such as this can be limited therefore making everyone's lives a lot simpler. If the syndicate is created using a lottery syndicate contract then any of the problems mentioned here will no longer be an issue. Such agreements can be downloaded from your lottery provider's website and in many cases can be picked up from your lotto retailer.

There is no real argument that the benefits of joining a lotto syndicate far outweigh the negative aspects involved. If the syndicate is set up legally as suggested, the only things you really have to be bothered about are making sure your syndicate payment is made each week and deciding what you will do with the cash when your lotto syndicate secures the ultimate prize.