......UK National Lottery & EuroMillions
"......1 in 4
National Lottery Jackpots are won by Syndicates
Make sure you're not the one that misses out...." Camelot
Group plc.
Introduction
A
lottery syndicate is a group of people who have pooled their playing
resources to increase their chances of winning the lottery. The winnings
are then shared equally throughout the syndicate. For example, if you buy
1 ticket you only have one chance of winning the lottery. However,
say you and 4 of your friends each buy a ticket you then have five
times the chance of winning the lottery jackpot at no extra cost to each
individual.
A drawback is that all the winnings must be shared equally. However, you
may not mind a percentage share of say £120 million Sterling!
That was the European EuroMillions Jackpot on Friday 17th November 2006 -
roughly 180,000,000 Euro or
230,000,000
US
dollars.
The odds of winning
the UK lottery are approximately 1 in 13,983,816
and the odds of winning EuroMillions jackpot are approximately 1
in 76,275,360. Playing in a group can increase the excitement
and fun of playing and your chances of winning. Groups can compose of
eligible friends, family or work colleagues or other eligible human
beings! By following a few simple guidelines, playing should be easy and
enjoyable.
How To Start A Syndicate
The
first thing you must do when setting up a group is to decide who's going
to be in it! Organise a "team" meeting with family, friends,
workmates and potential players to see what the initial interest is like
and how you should proceed. Ascertain how much they're going to pay for each draw and the
corresponding percentage share of any prize. Which games will you play?
Lotto, Hot Picks, Daily Play, Thunderball, EuroMillions?
Publicity
Discuss
publicity at the time of the agreement and what you will do as a group, if your
numbers come up. Do all of you want to be splashed across the pages of the
tabloids and endure the possible media frenzy, or would you prefer to quietly
slope away and spend your cash?
Appoint A Manager
It's
imperative that you appoint a manager. This person will be responsible for
the running the group, purchasing the tickets, administration,
record-keeping and collecting and distributing any winnings. Under The UK
National Lottery Game Rules, a winning ticket prize is payable to one
person only. We suggest that individual should be the appointed
manager. Clearly such a person should be very trustworthy and reliable.
The manager should write their name and address on the back of the tickets
and keep them safe. It will be that person's responsibility to share out
the winnings with the other members of the group. The manager will be
the one with their name on the Jackpot cheque.
Money has the ability to change the nicest of people when they
have a cheque for a life-changing amount of money in their hand!
A Bit About Tax
National Lottery prizes
are not chargeable gains for the purposes of UK Capital Gains Tax and will
not be normally assessed for UK Income Tax. In particular, where members of a syndicate
distribute a National Lottery prize in accordance with a written agreement
entered into before the win, no liability to UK Inheritance Tax (IHT)
should
arise.
If
there is no written agreement and the winner of a prize distributes
it to other syndicate members or non-members, this could be regarded by
the UK Inland Revenue as a PET (Potentially Exempt Transfer). Nothing to
do with Godzilla, your faithful pet hamster. This is where the Revenue will
subject the winnings to IHT if the organiser died within seven
years. It is essential to show that the syndicate existed before the win.
Note that HM Revenue and Customs law and practice may change. The
above comments are based on our understanding of HM Revenue and Customs
law and practice as at June 2006.
Make An Agreement
You should also have a
written agreement from the start, to avoid confusion and ambiguity over
ownership of lottery tickets.
Just think what would happen if someone didn't pay their stake during a
winning week? What if someone demanded that they were entitled to a bigger
share of the winnings than other people (perhaps because they have been in
the syndicate for longer)? You need to make a written signed agreement
that all players will adhere to, otherwise they can not join the
syndicate.
After
you've decided who's going to be in the group, you should draw up the
agreement. We suggest that the agreement should include all the following:
The
date the agreement was drawn up.
The
names of each member of the group.
Their
individual chosen numbers
The
appointed manager's name.
How
the numbers will be selected for each draw (e.g. random or constant or
picked by individual members)
How
much each member will pay per draw.
The
corresponding percentage share of any prize.
What
happens if a member fails to pay their contribution at any time (e.g.
Perhaps they get nothing for that draw if there's a win. Maybe they get a
percentage of what they would normally get and the rest is shared
appropriately amongst the other members. They could be excluded from next
weeks draw etc)
If
the group has a big win, how the members will decide whether or not they
want publicity.
How
wins will be paid. (e.g. £20 or over wins go to purchase next weeks
tickets)
State
the days of the week draws will be entered
Here’s
an example of a "Group Playing Agreement"
(Get
any agreement checked by a Legal Adviser!)
Some Key
Points To Remember
The
agreement must be signed and dated by each group member and should be
witnessed by, we suggest, a solicitor, doctor or someone of similar
standing.
If
the group changes, if the draw payments change, or in fact any other
material change, we recommend a new agreement should be drawn up
Copies
should be given to each member and the original kept in a safe place,
maybe with the independent witness, as the Inland Revenue may require to
see it as evidence of the group agreement.
Registration
There
is no need to register a syndicate although you may wish to keep your
written agreement safe, just in case it's required in the future by the
Inland Revenue.
The Practicalities Of
Playing In A Group
There
are basically 2 ways for a group to play The UK National Lottery: Weekly
or Multi-Draw.
For
each draw, the manager should take the group's completed play slips to the
retailer (or online) and pay for them to be entered into the draw. To make
running your group easier, you may like to play the same numbers each
draw. A multi-draw allows you to play the same numbers each draw, for a
period of time. Simply tick the appropriate box in the column marked
'Number of Draws' on the play slip.
Whether
members pay their money on the day of the draw or in advance, a record
should be kept of who's paid what so everybody knows where they stand.
Your
tickets should be kept safe as they will be required to claim a prize.
It's important that the manager writes his/her name and address on the
tickets. He/she may like to make a photocopy of the ticket(s) for each of
your group's members
Look
out for the winning numbers. These are broadcast every Wednesday
and Saturday on National TV and Radio. They are also be available in
national newspapers and clearly displayed in all National Lottery
retailers.
Chances of Success
The idea of increasing
your chances of winning that big prize if ten of you play each month could
be a good idea - after all, if you win £2,000,000 that's a cool
£200,000 each. Double that to 20 players and you will win £100,000.
Include more into the syndicate and you will clearly get less winnings
each, BUT your chances of success also increase. If the numbers you use
are chosen correctly you may even win more as a group than playing as an
individual with the SAME numbers.
When
considering the prospects of joining a lottery syndicate a key question
is, what makes playing in a syndicate better than going
alone, especially when you have to share your winnings with others. There
are several reasons why it may be better. Indeed, why would lottery
syndicates be flourishing if they weren't offering some kind of advantage. With a
lottery syndicate you win more frequently, this itself is a very
gratifying idea for those who have been playing on their own for years,
without having won a thing. You win more with a syndicate, as you are
eligible for the winnings of other people. This increase in probability of
a win implies that virtually everybody takes home some winnings more often
than not. If you are not
happy with the odds of playing alone, please read on and see how TheLotteryWorks
and the e-Lottery Syndicate System (a member of Virtual
World Direct e-Lottery) can improve your chances.
TheLotteryWorks
and The Virtual World Direct (VWD) E-Lottery way
.....The
Smarter Way to Play
Managing a lottery
syndicate is a thankless job, offering very little motivation. Even the
most enthusiastic syndicate manager may be overwhelmed by the task. This
is a reason why a lot of syndicates actually disband. This in turn leads to less
playing, fewer players, less money in the pot and less money for good
causes.
With the e-lottery method, you can forget all
the hassle of running a syndicate documented above! Virtual
World Direct will do all that for you - and more. So you get all the
benefits of playing in a syndicate and none of the red-tape, paperwork and
organisation.
In
addition, the e-lottery method greatly increases
your chances of hitting the jackpot. In the UK Lotto, you are not required to match more than two
numbers to win some money as one number is guaranteed even before the
balls are rolled. Playing UK Lotto via this syndicate gives you a 702%
greater chance at winning and your chances of winning. Euro
Millions increase by a whopping 3600%.
According to Camelot statistics,1
in 4 wins are claimed by syndicate members. Of course, since the
winnings are divided between players, the earnings may be lower. However, as
you play regular wins accumulate to give you a substantial sum over a
period. This syndicate also opens up other avenues of earning such as an
affiliate program and various competitions and bonuses that are on offer
from time to time. The affiliate program is often the major deciding factor for
people wanting to join. The reasons for this are many - the most
attractive one being the chance to play for free
once you get 5
people to join. There are also prizes to be won by affiliate members and
many performance incentives are present so that the returns for
maintaining your affiliation are rewarded.
Considering the pro's
and con's, We believe belonging to a lottery syndicate gives you a far
better chance of winning! Especially VWD
e-lottery
Points to note
Each
group member must be 16 years or over to play The National Lottery and
EuroMillions. You
must be over age 18 to be a VWD affiliate. A summary of the Player Code Of
Practice is on display at all National Lottery retailers. In the event of
any discrepancy the Games Rules and Procedures apply. See UK
National Lottery Rules
We
hope these guidelines are useful. They are provided without legal liability on
our part.
The Small Print
We believe the contents of this page and
website to be true and
accurate, as at the date of writing. We can give no assurances or warranty
regarding the accuracy, currency or applicability of any of the content
in relation to specific situations and particular circumstances. Such
content is for general information purposes only and do not constitute
advice. If you need specific advice regarding lottery agreements or the tax
implications, please seek a professional who is licensed or knowledgeable
in that area.
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in addition, to certain content or parts of this site. See our General
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