How to Start a Lottery Pool

Want to potentially increase your chances of winning the lottery and save money on gambling? Consider starting a lottery pool!

A lottery pool is where a group of people pitch in to buy lottery tickets and split any winnings. You can take your gambling money further in a lottery pool because you pay less to play your favorite lottery games and generally reduce the number of competing tickets. That can mean a better chance for you and your team to win.

If you’re looking to take your lottery game to the next level, consider starting a lottery pool of your own using these nine steps.

1. See if you’re allowed to start a lottery pool.
2. Pick a leader.
3. Establish clear rules.
4. Determine buy-ins and how you’ll split winnings.
5. Sign a written agreement.
6. Opt for digital money collection.
7. Keep track of everything.
8. Always provide copies of tickets.
9. Separate all personal tickets from pool tickets.

Note: This article should not be considered legal advice for starting a lottery pool in New Jersey.

1. See if You’re Allowed to Start a Lottery Pool

While New Jersey technically allows lottery pools, there are some groups of people who may not be allowed to participate, especially in work settings.

If you want to start a lottery pool at work, make sure that this type of gaming is allowed based on your industry. For example, employees of the federal government are generally not allowed to participate in lottery pools at work. You should also make sure that your employer permits lottery pools and other types of gambling in the workplace. Check your employee handbook, or meet with your organization’s human resources department. You should also consider asking your employer for permission to start a lottery pool just in case.

Want to get a group of friends or family together for a lottery pool? First, make sure that everyone is old enough to gamble. Then, consider everyone’s budget. If you’re looking to purchase a lot of tickets for the top prize, you may want to get a bigger group of people or invite those who have more disposable income. A lottery pool should be fun but not a detriment to players’ financial life.

2. Pick a Leader

Once you know who is going to be in the pool, work together to decide who should be the leader. This person is usually in charge of collecting money, tracking all transactions for the pool, and buying tickets. But some pools have a separate ticket buyer and pool manager.

The leader doesn’t have to be the person who suggests the idea of a lottery pool. In fact, your group should discuss who has the best qualities to successfully and fairly lead the pool. Here are some qualities to think about:

• Trustworthy and honest: A lottery pool must have a pool manager/ticket buyer everyone trusts. Someone who is honest can ensure the pool works, the money is managed securely, and everyone is comfortable with the arrangement.
• Organized: A lottery pool leader should also be very well organized. Even with a handful of people in the pool, managing all the transactions from week to week can be a challenge. Choose someone who’s good with money, systems, software, and managing people.
• Communicative: The easier your pool leader is to get a hold of, the better. You want someone who will be open about the results of every draw, update the group if there are any issues, and follow up with players who may be running late on submitting their stake.
• Can handle conflicts: Money can be a tricky subject, so the pool leader must be comfortable and confident with handling any potential conflicts. These may include players not adding to the pool or disagreements over rules.

You should determine what the leader’s responsibilities are, and then put it in the agreement you’ll later sign.

3. Establish Clear Rules

The only way to make sure the lottery pool is fair for everyone is to discuss and agree on all the rules. Make sure you talk about all the possible scenarios that could happen, such as if you win the big prize or someone fails to pay their share. Everyone should understand all the processes so they feel comfortable and informed.

Here are some rules to think about and include in a written agreement:

• The types of games you’re going to play, including special picks, like the Powerball
• How often you’ll purchase tickets, which may be multiple times per week, weekly, or bi-monthly
• Deadlines for when to submit your money and how to do so
• What constitutes a small prize and what to do with it, such as use it to purchase more tickets or split every win no matter how small
• How you’ll pick lottery numbers, such as randomly or by getting player input
• How you will claim winnings, like if you will form a trust to fairly split money and have a legal team manage the prize

4. Determine Buy-Ins and How You’ll Split Winnings

One of the biggest rules you should establish early on is the buy-in. There are a few ways you can set a buy-in:

• Fixed buy-in: Consider a fixed buy-in to make sure the amount of money in the pool is consistent. Pick something that’s fair for everyone involved, that way everyone who wants to participate can.
• Equal pay buy-in: In addition to the amount being fixed, you should also consider whether you want everyone to contribute the same amount. This makes it easier to split prizes and reduces arguments over who’s owed what.
• Pay what you can: Alternatively, you can allow players to put in what they can for each ticket purchase. Whatever percentage a person stakes in the pool is the percentage of the prize they will get if your pool wins.

Some groups set up pools so that the person who buys the ticket and leads the pool gets a bigger portion of the prize in exchange for their efforts. Consider this as well.

Talk over the buy-in with all the participants, and then pick one and stick to it. This keeps the agreement as simple as possible. Change only if everyone agrees to change the buy-in rules.

5. Sign a Written Agreement

Type up all the rules and have everyone review and sign the document. It doesn’t have to be that formal, but the more specific, the better. This document should include every rule you agreed upon, the names and contact information for all the players, the buy-in amounts, how winnings will be split, and more.

Everyone should sign it to show they understand the rules. This signed agreement also proves that you all have an agreement to split the money, which can help in case anything should happen. For example, someone tries to claim a stake they didn’t contribute to or if any players are possibly left out of their fair share.

6. Opt for Digital Money Collection

Some pools may collect cash to purchase tickets, but this can cause a few problems. For one, it’s harder to track who paid what to whom and when. Another problem is that cash can easily get lost.

That’s why it’s best to use a digital money transfer app to collect pool money. Having this paper trail means you can:

• Prove who did and didn’t pay each week
• Demonstrate who had a stake in each ticket purchase and who didn’t

Digital money collection is best for all types of pools because it helps reduce human error and can keep the pool running smoothly and fairly for all.

7. Keep Track of Everything

Using the digital transactions, put that data for every player into a tracking sheet. You can use software like Excel or Google Sheets to track every ticket purchase, who paid in, how much they paid, when that money was received, and more. All this information keeps everyone in the group accountable to the leader, and vice versa.

8. Always Provide Copies of Tickets

When the pool leader/ticket buyer gets the tickets each time, they should photocopy the tickets or take photos and send the copies to each member of the pool. This is to ensure everyone can watch the drawing and get a receipt that the tickets they helped pay for were purchased. You should also make sure all players see the actual tickets prior to the drawing.

The leader should also keep all tickets, whether they win or lose. This can help end any possible disputes.

9. Separate All Personal Tickets From Pool Tickets

If anyone in the pool, but especially the ticket buyer, purchases their own lottery tickets outside the pool, it’s important that those be kept separately. It’s also helpful to inform other players of who plans to purchase their own tickets so that other players are aware. Sharing this information makes it easier to settle any disputes over wins outside the pool.