Bets are shared and profits are shared
If the jackpot was hit in the lottery, some of the winners are so-called syndicates. A lottery syndicate is a group of people who play a lottery together. In the event of a win, the amount earned will be divided among the participants of the syndicate. There are private syndicates formed, for example, by friends or the work environment, and syndicates under the patronage of a commercial provider who is responsible for organizing the group.
Participation in syndicate increases chances of winning
There are many reasons for participating in a syndicate. On the one hand, the chances of winning for the syndicate increase when several participants use their money and the costs for the individual are lower. In addition, the effort involved in participating in the lottery as a member of a syndicate can be reduced because only one member of the syndicate has to fill out and submit the lottery ticket on behalf of the syndicate.
On the other hand, the amount earned must be divided in the event of a win. Each player must decide for himself whether he is willing to do this before he decides to participate in a syndicate. Especially in the case of comparatively small wins, such as four correct winning numbers, each individual only gets a small amount of winnings after the prize has been divided up in a betting pool with a large number of members. Incidentally, just like for individual players, the winnings earned from syndicates are tax-free.
Written contract recommended
If you decide to take part in a syndicate in a private environment, you should record the agreements made in writing before participating in the game, Tatjana Halm from the Bavarian consumer advice center recommends to FOCUS online. The contract should therefore specify the essential framework conditions for participation in the syndicate. This includes, among other things, a regulation on the participating players, their contributions and the share to which each member is entitled in the event of a win. A contractual basis creates clarity and prevents discussions in the event of a win, Tatjana Halm told FOCUS Online. The lottery companies in the individual federal states offer sample contracts that syndicates can use as a guide.
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