A bank account for a lottery syndicate

JustAnotherSaver

Was considering setting up a lotto syndicate at work. A few have approached me and asked if i'd start one and it was actually something i thought of a few years ago.


One of the things i'd probably prefer if i was to take it on board would be money coming to me via bank transfer so that both parties have proof whereas if someone is paying via cash and doesn't pay in one week when there's a big win there could be all sorts of nonsense arising because of it.


I wouldn't really want this mixing in with my day-to-day accounts so it'd be a new account specific for this activity that i'd be looking at and nothing else.



Just wondering if anyone else runs a syndicate and has done this? My concern really is that the bank will shut down my account for gambling reasons even though i play the lotto myself through my normal account perfectly fine.


Not sure how likely the shut down would be so i'm curious if anyone here does this or has done it.

jonnygee2

I wouldn't over think it as you won't win anyway.

This already sounds like way too much stress for no benefit. If you really want to play just buy a ticket, they are £2!

JustAnotherSaver

Well if opening a bank account is "too much stress" then we're all in trouble here.


Anyone else got input on what i mentioned in the OP?

Abbafan1972

In my experience, lottery syndicates are a good idea, but eventually people will get bored and stop/forget to pay, or say "I don't have any money this week, can I give it you next week?"

Wash, rinse and repeat.

Ben8282

How many people will be participating?
How will the money be collected from them?
How ill the ticket be purchased?

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JustAnotherSaver

I'm not quite sure how discussing the operationals of a syndicate actually helps with whether an account is likely or unlikely to be closed because of it being used purely for the syndicate.


But i'm willing to see how you guys are going to connect the two.

Ben8282 wrote: »

How many people will be participating?
How will the money be collected from them?
How ill the ticket be purchased?

1) Unknown. More than 1, less than 100.
2) Bank transfer preferably. There's some old guys involved who online banking will likely be a step too far for them but they'd be interested in playing so perhaps a duplicate book or a diary where anything paid with cash is signed for by both parties and this is stipulated in the rules.

3) Online account.

JustAnotherSaver

Abbafan1972 wrote: »

In my experience, lottery syndicates are a good idea, but eventually people will get bored and stop/forget to pay, or say "I don't have any money this week, can I give it you next week?"

Wash, rinse and repeat.

I already knew that and i'm fine with that. It shouldn't be too hard to look in to the cash book/diary (if cash was to be an option) and the online bank account and see whos payments has covered that weeks & therefore who is 'in' and who therefore isn't.

Update that weeks spreadsheet to highlight who paid for it (& therefore has share of any winnings from that week) and who didn't (& therefore doesn't) and job done.



You want the winnings then you pay, simple. None of this i'll sneakily stop my payment & still argue i should get the winnings and none of that pay for me now and i'll pay twice next week nonsense. Rules will be clear to cover this & there'll be no exceptions.

jonnygee2

Well if opening a bank account is "too much stress" then we're all in trouble here.

Clearly, I meant more that you are already worrying about account closures, people not paying on time, disputes over prizes you'll never win etc.

I'm not quite sure how discussing the operational of a syndicate actually helps with whether an account is likely or unlikely to be closed because of it being used purely for the syndicate

For reference - unlikely but possible the account will be closed or frozen. On the one hand, it's an unusual use of the account - lots of bank transfers in, single payments out, so it's well outside of 'normal usage'. It'll likely be flagged for review pretty quickly.

But, the amounts will be very low and the outward payments will be to the national lottery, so most likely it will pass review. At worst, someone might temporarily freeze the account and ask you what it's being used for, and it'll be an easy answer.

The lottery is not normally classified as a gambling transaction for AML purposes. The major worry with gambling is that it is often used as a means of money laundering, but the lottery would be a pretty inefficient way to launder money because you'd never win! It's more the substandard account usage that would cause a very low chance of being a problem.

LobsterMemory

Who ever said you're overthinking this is right.

The banks have a duty to sort out money laundering

Taking in £30 each week, paying it to the National Lottery and getting £2.80 back every 6 weeks either makes you a normal human being or the worst money laundered ever

JustAnotherSaver

jonnygee2 wrote: »

prizes you'll never win etc.

Someone probably said that to these guys too...


https://www.dailymail.co.uk/news/article-142457/Five-trillion-Punter-scoops-second-lottery-win-numbers-By-David-Wilkes.html
https://www.national-lottery.co.uk/life-changing/winner-euromillions-breaking-news


Gotta be in it to win it.