What Is a Lottery Pool, and Should You Start One?

• A lottery pool is where a group of people split the cost of lottery tickets and then split the winnings.
• Lottery pools are technically legal in New Jersey, but some people may be ineligible to compete in certain settings.
• You should treat a lottery pool like a business arrangement, with clear rules, signed agreements between all members, an assigned leader, and a paper trail.

Do you wish you could play the lottery more often? Are you on a budget that prevents you from purchasing that powerball add-on for the biggest lottery prize? A lottery pool may be the answer to your troubles.

A lottery pool is a great way for lottery lovers to make the most of their wagers and go after the most lucrative lottery prizes. Let’s explore how a lottery pool works, who’s eligible to participate in a lottery pool, the pros and cons of joining a lottery pool, and how to start your own.

Note: This article should not be considered as legal advice.

What’s a Lottery Pool?

A lottery pool is a group of people who all pay into a fund to purchase lottery tickets and share any winnings. There are many ways to conduct a lottery pool, but many pools involve multiple people who put in the same stake (amount of money) on a regular basis and split the prize money evenly.

Many lottery pools are between families, friend groups, and even co-workers. There are even public lottery pools available across the U.S. but many states, like New Jersey, don’t allow this type of gambling.

While this can be a fun way to play the lottery in New Jersey, there are a lot of things to consider when starting a lottery pool, no matter who you’re playing with.

Is a Lottery Pool Legal in New Jersey?

While New Jersey places strict rules on gambling throughout the state, many people in the state are able to participate in lottery pools. The New Jersey Lottery even provides some helpful tips on how to create a safe, fair, and fun lottery pool.

However, it’s important to note that certain facilities are not allowed to conduct any sort of gambling activities, including lottery pools. For example, bars are not allowed to have any form of gambling unless they have a specific gaming license. If you work in a certain industry, you may not be eligible to participate in any type of gambling pool, such as if you’re a federal government employee.

As for lottery pools at work, it largely depends on your employer’s rules. Always check with your human resources department or employee handbook about competitions and pools. Ask for permission before you start a pool, too, just to make sure your employer knows.

Reasons to Start a Lottery Pool

One of the best reasons to start a lottery pool (or take part in one) is that you gain access to a bigger stake, which means a bigger payoff if you win. So if you can’t afford to play for the highest prize, you can team up with others to vie for it.

Another pro of starting a lottery pool is that you can play the lottery more often, thus increasing your chances of winning. A lottery pool can be a great option for those on a tight budget. Instead of spending $200 per month playing your favorite lottery games in New Jersey, you split that cost between multiple people.

The final key benefit of joining a lottery pool is that you technically reduce the number of individual tickets purchased, which improves your odds. While some people who participate in lottery pools purchase their own personal tickets, it’s common for players to only play the lottery through a pool.

Cons of Being in a Lottery Pool

There are some cons to joining a lottery pool to consider before starting your own.

It is possible for there to be disagreements between groups who’ve won big prizes, primarily about who gets what amount of the prize. Some lottery pool scandals even involve people getting denied their fair share of a jackpot because the pool leader cheated them out of it. But there are many ways to avoid this situation, such as by picking a leader that everyone trusts and getting everyone to sign an agreement about the rules.

Another con is that you have to split any and all prizes with other people. So if your group only wins a small prize of a few thousand dollars, you may only get a few hundred, depending on how many people are in your pool. But this trouble evens out when winning a big prize because even a portion of a prize in the millions can be life-changing.

How to Start a Lottery Pool

Follow these steps to start your own lottery pool:

• Get your pool together: Figure out who you want to invite to join the lottery pool. Some things you want to consider when picking players include whether they’re easy to communicate with, whether they’re old enough to gamble, their history with gambling, and their budget.
• Pick a leader: The leader will be in charge of managing the pool, including collecting money and tracking collections. They may also be the designated ticket buyer. This person doesn’t have to be the person who comes up with the idea to start a pool, though. Find someone who is trustworthy, well-organized, and easy to communicate with. Everyone in your group should agree to the leader and that person’s responsibilities.
• Set guidelines and rules: Work with your team to establish all the rules, including the type of lottery games you’re going to play, how much everyone is staking, how you pick lottery numbers, how winnings will be split, what to do with small prizes, and more.
• Have everyone sign an agreement: Then, type those rules out and have everyone in the pool sign and agree to the terms. This ensures everyone is on the same page and your group has documented proof of the rules if there are any disagreements.
• Collect money: Some people think collecting cash is easier, but you lose a clear paper trail of collections. Consider using a digital money transfer method so you have transaction receipts that prove who did and didn’t pay.
• Keep track of players: The leader should track who does and doesn’t play each week so that someone who doesn’t contribute one week can’t stake a claim on that week’s winnings. In your rules, outline what happens when someone can’t contribute to the pool so everyone knows the protocol.
• Make tracking information public: It’s best to keep the player tracker, ticket purchases, and money collection receipts in a public document everyone in the group can access (but not edit). This keeps the leader accountable to the group, and vice versa.
• Always send out copies of the tickets: Once the tickets are purchased, make sure every player gets a photocopy of the tickets. That way everyone can check the numbers. It’s also best to show everyone the actual tickets, too, for accountability.

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