Starting a Lottery Business

What is a Lottery Syndicate? (and How to Start One)

4 Leaf Lotto
by 4 Leaf Lotto / Feb 21, 2022

Lottery syndicates have become a popular way for lottery players to pool funds, purchase large quantities of tickets, and increase their chances of winning. While not a new concept, the evolution of lottery technology and online lotteries has turned the simple act of group betting into a sophisticated strategy with many options and variables. 

As a lottery operator, or an entrepreneur looking to start an online lottery, you’ll want to incorporate lottery syndicates into your business plan—and into your lottery management software.

In this article, we’ll cover the fundamentals of lottery syndicates, and explore how they can contribute to the growth of your lottery business.


The Ultimate Guide to Starting a Profitable Lottery Business


What is a Lottery Syndicate?

A lottery syndicate is a betting scenario in which a group of players pools their funds and buys lottery tickets together. Each member of the group owns a portion of the lottery tickets. If the group wins, each member receives a part of the winnings that is directly proportionate to their individual contribution.

When private citizens are forming a lottery syndicate, one of them will often be appointed as a manager. The manager is responsible for buying the tickets and for splitting the proceeds after winning. This can get complicated, and legal disputes are not uncommon.

Online lottery businesses are leveraging technology to simplify syndicate management responsibilities and offer customers access to more playing options. Lottery platforms with syndicate management capabilities put operators in the role of manager. By offering syndicates, your lottery can benefit from high-volume sales and market to a wider audience.


How to Grow Your Lottery Business with Syndicates

With lottery syndicate software, players join an anonymous syndicate group with you as the manager, and your platform manages the lottery funds and distributes the winnings. 

As a lottery operator, you can make syndicates as simple or complex as you want. Some platforms will bundle multiple games into a syndicate, while others prefer to have individual syndicates for each game. Your lottery platform is essentially grouping together all of the:

  • Pooling – Assigning the players to the tickets they will share.
  • Billing & rebilling – How you charge players for providing syndicate lotteries. Players often subscribe with monthly autopay options.
  • Reports – Generating overviews and payment breakdowns upon winning. This also helps manage compliance regulations.

The more syndicate players value these services, the more likely they will become loyal customers. Their goal is simply to increase their odds of winning, and your platform is streamlining the process, making it easier, and giving them more options.


Do You Need a Gaming License to Operate a Syndicate with Lottery Management Software?

Every region is different when it comes to lottery syndicate rules and regulations. Always be sure to research the laws in your jurisdiction before starting a lottery business in a new country.

Here are a few guidelines:

If you are betting on the results of lotteries, you will need a license.

If you are combining syndicates with ticket messaging, you might need a license. It depends on if the gaming council defines this as a concierge service or not.

If you are buying the tickets and pooling them together into a syndicate, you may not need a license.

In some areas (like the UK), a syndicate manager can’t just purchase tickets for a large group without investing into the pool themselves. In these scenarios, a platform provider can be a syndicate manager if they own a share of the lottery pool (depending on the law, you can usually more than cover your share with associated fees).


Does Your Lottery Business Need Software for Syndicate Management?

Choosing the right  lottery management software is one of the most important decisions when starting an online lottery business. Whether you’re ready to incorporate lottery syndicates into your offering, or still exploring your options, the best lottery platform providers will help you understand the technology requirements and other key considerations, so you can make an informed decision. 

The best place to start? Schedule an introduction to 4 Leaf Lotto today. You’ll learn how a lottery platform should scale with your lottery business at all 4 stages of lottery growth—and get a customized lottery growth plan to map your journey.


The Ultimate Guide to Starting a Profitable Lottery Business



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