Running a lottery syndicate
If you want to organise a lottery syndicate with colleagues at work or among a group of friends you do not need a licence or any kind of permission.
However, to run a syndicate, you must ensure that it is operating in a certain way in order to avoid being classed as ‘promoting a lottery’ under the Gambling Act 2005.
The example below illustrate how a lottery syndicate works.
You do not need a licence if you, as the organiser of a lottery syndicate purchase tickets from a lottery and distribute the winnings amongst the syndicate members. However, to run a syndicate, you must ensure that it is operating in a certain way in order to avoid being classed as promoting a lottery under section 252 of the Gambling Act 2005.
In a traditional workplace lottery syndicate, person A offers to purchase lottery tickets, using the money of persons B, C, and D. As far as the lottery operator is concerned, person A is the only ticket holder.
Therefore, the lottery promoter would only distribute any prize won to person A. Persons B, C, and D would not have a direct claim. The fact that person A has agreed to distribute the prize, if any of the tickets win, amongst persons B, C, D, gives a contractual relationship between the parties.
This personal syndicate organizer (person A) would avoid being classed as a lottery promoter. If a business operated syndicates as described, the same would apply.