Lottery Pools -
What They Are and How They Work
Have you ever seen one of those mega lottery jackpots giving
away hundreds of millions of dollars and thought, "I'd be happy if I could
just win a fraction of that amount?" If so, a lottery pool might be for
you.
Lottery Pools Defined:
Lottery pools are a way of getting better odds of
winning a lottery without having to pay more money for tickets. A group of
people chips in money to buy lottery tickets with the agreement that if they
win, they will split the pot.
So each participant will receive less
money than if he or she had bought the ticket themselves, but they also get
better odds of winning in the first place.
How Lottery Pools Work:
Here's a simple example: your office lottery pool has 50
members. Each of your coworkers contributes a dollar. The lottery pool manager
then buys 50 $1 lottery tickets and holds them safely until the lottery
drawing.
Now, let's say that Play online lottery pool was very
lucky and won a $50 million lottery jackpot. Each of the coworkers who
participated will receive a million dollars (before taxes, of course).
For the $1 buy-in, the lottery pool participants had 50 times the chance of
winning for 1/50th of the total prize value.
Some lottery pools are more complicated. For example, they may
allow people to buy more "shares" of the pool by contributing more
money. If one of the participants in the example above had contributed $5
instead of $1, and the lottery pool manager had used the extra money to buy 55
tickets instead of 50, he or she would be eligible to receive 5/55ths of the jackpot.
What Do Lottery Pools Do with
Smaller Prizes?
Of course, it's much easier to win $5 in a lottery than $50
million, and $5 divided by 50 is hardly worth even dividing out among the
lottery pool participants. So what do lottery pools do with small prizes?
There are two options, depending on the size of the prize.
The lottery pool can choose to either
divide the small sum between the participants or, if the group buys lottery
tickets regularly, they can choose to put the prize amount toward buying more
tickets for the next lottery drawing.
Do Lottery Pools Work?
The chances of winning the lottery are very small no matter what
you do, there is no secret that can guarantee that you'll hit a jackpot. But
lottery pools are a way of increasing your odds without increasing your risk of
losing your financial investment in a long-shot dream.
Lottery pools have won big jackpots in the past. For example:
- According
to an ABC News
article,
a 49-person office lottery pool at SEPTA, a Pennsylvania transit agency,
won a Powerball jackpot for
$172.7 million in April 2012.
- As
a CNN article relates, a 7-person office lottery pool at New York State's
Division of Housing and Community Renewal in Albany split a $319
million Mega
Millionsjackpot
in March of 2011.
- Huffington
Post shares the story of an office lottery pool at Quaker Oats that shared a
$241 million Powerball jackpot among 20 employees. A few months later,
they won a $10,000+ prize as well.
- MetroNews in West Virginia reported that
after 20 years of trying, the Mountaineer 26 lottery pool scored a
million-dollar jackpot.
There have also been many reports of Play lottery online pools that have ended up in lawsuits
or people being cheated out of ticket money or wins. It's a good idea to set up
a set up a lottery pool
contract before you get started, to make sure that everyone is
treated fairly.
Who Participates in Lottery
Pools?
Office lottery pools are popular because it's easy to get a big
group of people to chip in a few bucks each toward a chance of winning. It also
helps to encourage people to get to know one another across departments. But
any group of people can create their own lottery pool; groups of friends or
relatives, your local sweepstakes
club, neighbors in an apartment complex, or members of any other
social group might be interested in participating.
Do Lottery Pools Ever Cause
Problems?
Unfortunately, yes.
With a lot of money on the line,
people can act badly and try to cheat fellow players. Lottery pool members have
been sued for various reasons, including conflicts over who participated in the
pool, whether tickets were purchased privately or for the group, whether the
proper numbers were played, and more.
There have also been cases where unscrupulous people collected
money for lottery pools then pocketed the cash without ever buying the tickets.
These problems can be avoided with a little preparation.
See Tips for
Running Fair Lottery Pools for more information.
Are Lottery Pools Legal?
Depending on your location, lottery pools may be illegal, so
it's important you check before you decide to start one. Lottery pools are a
form of gambling. In the United States, there are no federal laws prohibiting
gambling, but individual states can, and do, prohibit it. If gambling is
prohibited in your state, lottery pools are as well.
If you're wondering whether playing the lottery is legal in your
state, check whether your state runs a lottery. If your state has no lottery,
it's a good sign that gambling could be illegal. See Lottery Games
by State to see which states offer lotteries.
You can also search for your state's gambling laws. Findlaw.com
has a list of gambling and lottery laws by state which
could help.
Does Your Workplace Prohibit
Lottery Pools?
Aside from laws prohibiting gambling, you also want to be sure
that your workplace does not prohibit lottery pools during work hours. In some
companies, gambling on the job is a fireable offense.
Before you start an office lottery pool, check your business' code of
conduct or employee handbook to see if there's a no-gambling
policy. If you're still not sure, check with your company's human resources
department.
If you are a government employee or a civilian working at a
government facility, you face additional restrictions. Lottery pools that take
place "on Government-owned or leased property or on duty for the
Government" are prohibited, according to Cornell Law
School.
Summary:
Before you get started, check with local laws and with your
company's human resources department (if you're starting an office lottery
pool) to ensure you are not breaking any laws or guidelines that could turn a
fun lottery pool into a serious problem. If you decide to go ahead with your
pool, read how to avoid
lottery pool problems for tips on how to protect yourself and your coworkers.
Good luck!
Disclaimer: I am not an attorney, and this is not intended to be
legal advice. For professional advice, please contact an experienced lawyer.
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