Lottery pool agreement: what to include
A lottery pool agreement is a short written document that says who is in your pool, what everyone pays and how a prize is shared. Most disputes in lottery pools are not about greed. They happen because nobody wrote down what was agreed.
Writing the agreement takes ten minutes. This page lists what to include and gives sample wording you can adapt for an office, family or friends pool.
Why every lottery pool needs a written agreement
When a pool wins, memories differ: who was in the pool that week, who had paid, how the prize was meant to be split. A written agreement that every member accepted answers those questions before they turn into an argument.
It also protects the organizer, who handles the money and the tickets on behalf of everyone else.
What to include in a lottery pool agreement
- The members, and who the organizer is.
- The games you play and how often.
- The contribution for each draw, and the deadline to pay.
- What happens when a member misses a payment.
- How the tickets are bought, who keeps them, and when photos are shared with the group.
- How a prize is split between members.
- What happens to small prizes.
- Who claims a prize, and how taxes are handled, including IRS Form 5754 for shared winnings.
- How members join the pool and how they leave it.
- How and when the pool ends.
Sample wording
These samples are examples only, not legal advice. Change the amounts and rules to suit your group.
Members and organizer: "This pool is made up of the members listed below. [Name] is the organizer and buys all tickets on behalf of the group."
Contributions: "Each member contributes $[amount] for each draw, due before [day and time]. A member who has not paid by then does not share in that draw's tickets."
Winnings: "A prize is shared in proportion to each member's contributions for the winning draw. Prizes under $[amount] are used to buy more tickets for the group."
Claiming: "The organizer will claim the prize and report every member who shares in it on IRS Form 5754."
Leaving the pool: "A member may leave at any time by telling the organizer. They keep their share of tickets already paid for and no share of later draws."
Getting every member to agree
An agreement only helps if every member has read it and said yes. Sending a document around by email makes it hard to know who has accepted it.
With FutureEdges the organizer writes the agreement once, and each member opens it in the app and accepts it with their name and the date. The acceptance is recorded with the group. To see the whole process, read our guide to running an office lottery pool, or our blog post on lottery group agreements.
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Frequently asked questions
Is a lottery pool agreement legally binding?
A written agreement that every member accepted is good evidence of what the group agreed, but how it is enforced depends on your state. For a large pool, ask a lawyer to review it.
Does every member have to sign the agreement?
Everyone who shares in the prize should accept it, and the group should keep a record of who accepted and when. In FutureEdges each member accepts in the app and the acceptance is recorded.
What if a member does not pay for a draw?
Put a rule in the agreement before it happens. The most common rule is that a member who has not paid by the deadline does not share in that draw's tickets.
Does FutureEdges write the agreement for me?
You write the rules for your group. FutureEdges gives you a place to write them, share them with every member and record who has accepted.