Here’s a simple example: let’s say we play mega million (ticket price $1/combination) the lottery pool has 40 members and each one contributes with 5 dollars. The club manager then buys 200 lottery tickets and than publish them on the website and social media and so all the members will be informed about what combinations are been purchased. Also at the time of purchase the an email confirmation will be sent.
Pool membership will also be published on the website and social media, to assure all participants that in case of winning his/her share will not be denied.
Now, let’s say that lottery pool was very lucky, and won a $100 million lottery.
The winnings will be share as follow: After taxes the club lottery will retain 2% of the winning amount and the each one of the participating members will equally share the rest of the prize.