You do not need a licence if, as a lottery union organizer, you buy lottery tickets and distribute the winnings to union members. However, to run a union, you must ensure that it operates in a certain way in order to avoid being classified as the promotion of a lottery under Section 252 of the Gambling Act 2005. The following example shows how a lottery syndicate works. This personal union organizer (Person A) would avoid being classified as a lottery organizer. If a company operated unions as described above, that would also apply. Therefore, the lottery organizer would only distribute each prize won to Person A. People B, C and D would have no direct right. The fact that Person A has agreed to divide the prize among persons B, C, D, if one of the tickets wins, gives a contractual relationship between the parties. If you want to organize a lottery syndicate with co-workers at work or among a group of friends, you do not need a license or any kind of permission. In a traditional lottery union office, Person A offers to buy lottery tickets, with people`s money B, C, and D.
For the lottery operator, person A is the only ticket holder. However, to run a union, you must ensure that it operates in a certain way, in order to avoid being classified as a “lottery promotion” under the Gambling Act 2005.