It is widely accepted that a lottery syndicate is about the best way to play in any lottery if you are looking to increase your odds of winning. In fact, more than one quarter of all lottery jackpot wins are collected by lottery syndicates. These lotto syndicates are typically formed by groups of workmates or friends who have the one goal of boosting their lottery winning chances. By clubbing together in this manner allows each participant of the syndicate more potential winning entries while at the same time keeping expenditure to a minimum.
Being a lottery syndicate member can come with a considerable odds advantage especially if the syndicate has a larger number of individuals participating. However, being a lottery syndicate member does have its downside.
The first and probably most obvious negative aspect of a syndicate is the fact that all winnings are split between all members of the syndicate equally. Therefore, the more syndicate members there are, the lower the payout each of these members will receive. As a result, a sizable lottery syndicate win may only generate enough cash for each member to pay for a holiday or a new car; but certainly not give up the day job and buy a luxury yacht! As long as each member is aware of this eventuality then everyone should be happy.
The second problem of lottery syndicates directly relates to the point made above. Stories can occasionally be found in the press relating to a greedy syndicate member(s) who is reluctant to share out the prize to colleagues and attempt to keep it all for them self. This can certainly be a big problem if the syndicate has been set up informally. If this is the case each of the aggrieved members have then got to prove legally that they have indeed been duped. There have also been cases where a lottery syndicate member has lost their share of the prize money due to late or non payment of their syndicate entry fee. Such cases often lead to legal action being sought.
The third problem that may arise if no formal lottery 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 very likely become a consideration for each of these members.
There are ways in which such problems can be limited thus making everyone’s lives a lot simpler. If the syndicate is formed using a legally binding lottery syndicate agreement then any of the issues mentioned here will become a thing of the past. Such agreements can be downloaded from your lottery provider’s website and in many cases can be collected from a lottery retailer.
There is no real doubt that the benefits of joining a lottery syndicate far outweigh the negative aspects involved. If the syndicate if set up legally as mentioned, the only things you really have to worry about are paying your money in each week and planning what you will do with the money when your lotto syndicate hits the big one.
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