Playing in a lottery syndicate can be a great experience which can substantially increase your chances of winning, providing a few rules are put in place first to protect the players and most importantly – the potential winnings!
Why play in a lottery syndicate?
Playing in a lottery syndicate can make buying your weekly ticket easier, more fun and more social. It can also dramatically increase your chance of winning!
For example, you and nine of your friends or work colleagues decide to setup a syndicate, each paying £2 and choosing five numbers and 2 Lucky Stars. Where before your £2 bought one set of numbers, now you will have an equal share in 10 sets of numbers providing 10 times more chances of winning a lottery prize!
Admittedly, you will have to split the winnings 10 ways, but taking a one in 10 share of £15 million would still net you a cool £1,500,000 – not bad, considering playing on your own might have meant you didn’t win anything.
How to start a EuroMillions syndicate
You can start a syndicate with a group of people anywhere – in your workplace, with family, a group of friends or the locals at your pub. It’s wise to set out some rules about the syndicate, choose how many people you will invite to take part and appoint a manager or “treasurer” to be in charge of the group. Under the National Lottery Game Rules, a prize on a winning ticket is payable to one person only – the manager, therefore you want to appoint someone trustworthy.
If you are setting up a work syndicate, it is usual that either the Line Manager or Secretary acts as manager. In families it is often the parent or elder sibling who is in charge of a syndicate. Money can often change even the best of friendships and relationships, so make sure that all members democratically agree on the choice of manager.
The syndicate manager will be responsible for the following:
- Creating and maintaining the syndicate agreement
- Collecting funds from each player to purchase tickets
- Purchasing tickets and storing them safely
- Checking tickets to see if any prizes have been won
- Collecting and dividing any winnings between players
The manager should write their name and address on the back of each ticket to ensure any winning tickets can only be claimed by the manager. Also remember that each member of the EuroMillions syndicate must be over the age of 16.
What to include in your EuroMillions Syndicate
You can make your own agreement and rules depending on what is relevant to your syndication, but it is a good idea to include following points:
- When the agreement was drawn up and when the syndicate started
- The name of each player in the syndicate group
- The name of the manager and their contact details
- How many tickets are purchased for each draw
- Whether tickets are purchased on Tuesday’s, Friday’s or both days of the week
- When ticket money will be collected and for how many draws
- How much each EuroMillions syndicate member will pay per draw and the corresponding percentage share of any prize
- What happens if a member fails to pay their contribution at any time
- If the group has a big win, how it will be decided whether or not you opt for publicity
The EuroMillions syndicate should be signed and witnessed by each member in the group. If the group changes (for example if a member leaves or joins) a new syndicate should be drawn up. A copy of the agreement should then be given to each player.
Although Lottery wins are usually tax free and normally do not count towards your Income Tax, they may be subject to Inheritance Tax unless a syndicate is made official. Keeping your paperwork in order is mandatory if you are in charge of a syndicate, as HMRC are likely to ask to see proof of this if you are lucky enough to scoop a big win.
This information has been provided according to our understanding of HMRC and its law and practise, but for accurate and up to date information you are advised to contact a solicitor or accountant for confirmation of current policies.
Start playing and good luck!