Lottery Pool Contract Questions to Ask Before You Start
Questions that your lottery pool agreement should cover
Lottery pools are an effective way to boost your odds of winning the lottery without spending any additional money. They can also raise morale in the workplace, bring neighbors closer together, and give members of an organization something to talk about. But there is also the potential for a lottery pool to cause hard feelings. To avoid this, you need a lottery pool contract.
A lottery pool contract simply outlines the way that the pool will be run, so that everyone is on the same page and knows what to expect.
A lottery pool contract doesn’t have to be extremely formal. The idea is to make sure that everyone knows, understands, and agrees to a set of rules. This can help you avoid lottery pool problems ranging from hurt feelings to lawsuits.
Before you start writing any legal document, you want to gather the information you are going to need. Here are some of the questions that you might want to answer in your contract.
Who Will Be Your Lottery Pool Manager?
It’s always a good idea to have one person who is in charge of the lottery pool. This person doesn’t have to do all of the work; they can delegate, too. But they are the point of contact if anyone has questions or concerns. They also make sure that every participant has a copy of the lottery pool contract, they keep track of the signed copies, and they make decisions like where to store the tickets after they have been purchased or who should be the one to buy the tickets this week.
When Will Your Lottery Pool Buy Tickets?
Some lottery pools buy tickets on a regular schedule like once per week, or once per month. Others buy tickets every time a jackpot hits a certain value. And other pools are valid only for a single drawing, then form anew every time an interesting lottery drawing (like a big jackpot prize) comes up.
Your lottery pool agreement should specify which drawing or drawings will be covered. It should include both the lottery games your pool will play and the specific drawings you will participate in.
Who Will Participate in the Lottery Pool?
Before you start to write your contract, you need to know who the pool members will be. Should your group hit a jackpot, some people are going to regret not participating, and regret make those people litigious.
Coworkers have sued winners because they claimed that they were unfairly excluded from participating in a pool that resulted in a jackpot. So you should be sure to outline who will be invited to play and how people can find out about the lottery pool.
Other questions your lottery pool agreement should cover include whether (and when) new people can join the pool and whether members can participate in some drawings while passing on others.
Can Members Buy More than One “Share” In the Drawing?
Some lottery pools allow members to put in more money to receive more shares in the prize if they win. For example, if a single ticket costs $2, a member can choose to throw $10 into the pot to receive 5 shares of the jackpot they win. The pool would then buy five extra tickets, raising everyone’s odds of winning.
Other lottery pools keep it simple by creating an even split; every member puts in the same amount of money, and every person receives the same amount in the case of a win.
Your lottery pool contract should outline how the jackpot will be split.
How Will the Lottery Numbers Be Chosen?
When you buy lottery tickets, you have two options: let the computer choose your numbers randomly, or pick your own numbers. Which method will your lottery pool choose?
The simplest option is to agree to let the numbers be chosen randomly, but if you do agree to let members choose their own numbers, you need to specify how and by whom the numbers will be chosen.
If you go that route, you might also want to have your lottery pool contract waive responsibility if the person buying the tickets accidentally chooses the wrong numbers. Imagine the bad feelings if the wrong numbers were purchased and the right ones won!
What Happens with Small Prizes Your Lottery Pool Wins?
Everyone joins a lottery pool in the hopes of winning a jackpot, but you are much more likely to win a smaller prize. Your lottery pool contract should clearly state what happens to low dollar-value prizes.
You can try to divvy up the prize among all the participants, no matter how small. Or you can put the money toward buying tickets for another drawing. Or you can choose to give small amounts to charity, or to an office coffee fund, or save them up for a group luncheon.
If you do choose to put the smaller prizes toward the next lottery drawing, it makes sense to say that only people who chip in to participate in the next drawing get the benefit.
For example: Say that this week, your pool of 20 people wins $5. That $5 is put toward the next week’s drawing. In the next week’s drawing, only 15 people participate, each putting in a two dollars to buy a ticket. With this suggestion, only the 15 participating people have the chance to win in the new drawing. Although 20 tickets are actually purchased, the 15 will split any jackpot 15 ways.
Your lottery pool agreement should state not only what to do with small prizes, but what the cut-off is for a small prize. Is it $5? $20? $100? $1,000?
Can Lottery Pool Members Buy Tickets Privately?
Imagine that you’re in a lottery pool and you find out that the pool manager has hit a jackpot, but isn’t sharing the funds. Why? Because the manager says that they bought the winning lottery ticket privately, not with the lottery pool’s funds.
This scenario has happened in the past, resulting in bitterness. To avoid it, make sure your lottery pool contract states whether participants, especially the person in charge of buying tickets for the group, can purchase lottery tickets outside of the pool as well.
If your contract does allow members to buy lottery tickets privately, be sure to make copies of the group’s tickets and distribute them, to be very clear which tickets belong to the pool. It’s a good idea to do this in any case.
Will Your Group Take a Lump Sum or Annuity?
If your lottery pool does win a big jackpot, you’ll have to decide whether to take a lump sum immediately or take an annuity and spread the winnings out over a number of years.
It’s a good idea to make the decision ahead of time and spell it out in your lottery pool contract to avoid conflict over the answer if you actually win.
Will Your Lottery Pool Remain Anonymous If You Win?
Some states allow their lottery winners to remain anonymous in case of a win. This helps the winners to avoid some of the negative fallout of winning the lottery, such as losing jealous friends, having reporters knocking at your door for an interview, or being deluged with requests for handouts.
With a group prize, keeping your identity anonymous becomes difficult if some members aren’t on board. To help avoid problems down the road, have everyone agree at the outset whether they’ll stay anonymous or announce their win, assuming you’re in a state which allows you to make the decision.
Finishing Up Your Lottery Pool Contract
This is not intended to be a comprehensive list of all of the issues that need to be covered in a lottery pool contract, but rather a way to start a conversation about your goals with your group. For legal advice, you should always consult a professional lawyer with familiarity with this kind of contract.
Once you have a legal document drafted, it’s important to have everyone read it, make sure everyone understands it (don’t let anyone just skim through it!), and then have each member sign it. You can add weight to the contract by having an uninvolved third party witness the signatures (even more if the third party is a notary!) Your lottery pool manager should keep all of the copies.
There may be local and state laws that influence your lottery pool agreement. Your state, your company, or your region may prohibit lottery pools. Be sure to speak with your company’s legal or HR department if you aren’t sure if you are allowed to start a pool.A lottery pool contract is a set of rules that participants agree to before buying tickets. See questions your pool should answer in their contract.
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Lottery Pool Agreement
Lottery Pool Agreement
The following individuals agree to join a lottery pool for the month of ___________________, for the purpose of jointly playing the _______ State Lottery:
___________________________________________________________ and the following games of the __________ State lottery: _________
and designate, ______________ as the Lottery Pool Manager for this month. Each participant shall be liable to contribute $____ per game played. Each party to the pool shall turn over all funds for the purchase of tickets at least 24 hours prior to the closing time for purchase of tickets for each game. In the event that a person does not do so, they shall nevertheless be liable to pay in their share of the money used, if a ticket or ticket is purchased for them.
In the event that any prizes are won, the pool manager, who shall serve without compensation, shall evenly divide the prize among the participants, deducting any amount owed for a failure to pay a required share. ANY AND ALL FUNDS WON AS PRIZES SHALL BE CONSIDERED TO BE HELD IN TRUST FOR THE POOL BY THE MANAGER.
This agreement shall not automatically renew and shall expire at the end of the month stated.
In the event of a prize being won in excess of $ ______, and settlement options are provided, the vote of the majority of the pool members shall decide. If there is no majority, the pool manager shall decide.
Any member may withdraw by written notice to the pool manager, and the pool shall thereupon end, but shall remain in effect for the past games played as a pool.
This is the entire agreement of the parties and there are no agreements express or implied not stated herein. This agreement may only be altered in writing signed by all parties.
Accepted and agreed: ____________________________________________________
Signed by All the Parties
Lottery Pool Agreement
This review list is provided to inform you about this document in question and assist you in its preparation. This agreement is more well care. It is bad enough to lose with the lottery. But to win the lottery and then lose your friends over haggling about who got what would be downright silly. This agreement helps protect against that contingency for two reasons: first, you have the agreement in writing; and secondly, everyone has a chance to determine whether they “really” mean in before they sign.
1. Keep multiple copies. Keep the paperwork in order as long as you elect to invest in lottery tickets.
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