You join a lottery syndicate in good faith. Even if you don’t know the members of the group or you have not done any business with the said syndicate in the past, you can still give it a try. There is nothing wrong with this especially if you have partnered with a reliable and established lottery syndicate. Sadly, this has not always been the case. There are a lot of existing syndicates that are not to be trusted at all.
To be sure, regardless of the syndicate you are choosing, make sure that you read the terms and conditions or have a contract signed. This clarifies the rules. You can always go back to the contract if ever you get confused later on. Keep a copy of the original document as well.
The contract should specify the responsibilities of both parties. It should also indicate how much should be paid each month and how the winnings will be divided if ever a syndicate number combination wins. The penalties for not paying should also be stated. There should be rules on what to do with members who have not paid their membership on time, or at all.
If there are changes to the terms and conditions, it should also be indicated in the contract and a new version should be given to you. The contract will only be valid if the company is registered and is authorised to conduct the operations.
Tax-related issues should also be clarified. Lottery winnings are usually non-taxable. If they are, the amount is usually already deducted before being sent to the winning syndicate. Syndicate managers who also have a cut of the winning amount also deduct their share before distributing the amount to the rest of the syndicate. Once banked, the said amount could have a different classification and might be subject to a different form of tax.
Invitation only membership
If given the chance, join lottery syndicates that are open only via invitation, like an e-luk invitation. This ensures that only responsible members form part of the syndicate. If they are not responsible enough, they run the risk of being removed from the syndicate. Of course, you don’t need people who are not responsible for paying the membership as part of your syndicate.
Upon receipt of the invitation, check the rules again before finally joining. Be responsible for paying your membership and check the results every now and then. Find out how the winnings were divided among members and if you have received your share.
There are a lot of rules you need to know when it comes to e-luk membership. Be aware of these rules first before signing up.