SEARCH NEWS:

 

Expert advice on lottery pools

"With jackpots of this size, you can afford to share the wealth and buy more tickets than you could or should by yourself. And it might be the luck one person brings to your pool that wins the jackpot," says Howard.

She is the author of Lottery Master Guide, available online and at Smartluck.com.

"To avoid legal hassles later on, before you contribute money to a lottery pool you should draw up a simple agreement describing the pool's bylaws and have each member sign it. A pool can be two or more people sharing the ticket cost," Howard says.

Matters to be decided and agreed upon are the size of your pool, the amount of money each member contributes, how often your pool will buy lottery tickets, how the winnings will be distributed, or if small wins are to be reinvested in additional tickets.

Decide whether members should contribute equal shares or if a member can buy more than one share and collect a percentage of the win in proportion to the total number of shares he/she owns.

Decide whether the per-share quota can be raised or lowered; if a limit is set on the number of participants in the pool; if new members can be voted in; if decisions should be made by unanimous vote or by majority rule.

The pool member designated to pay the tax on winnings should fill in IRS Form 5754 and send it to the lottery. At year's end, each member receives a W2G Form taxed for his share.

"It's best if the lottery office is willing to cut a separate check to each pool member. When the prize is large, some members may opt for the annuity pay outs, others may want their share in a lump sum. When your pool wins a jackpot, seek professional advice from an accountant and lawyer before you claim it," Howard says.

< Gaming News