Critique this internet business idea: pooled lottery tickets

[IlliniRyRy]

Hi, I just came up with this idea a few days ago and I need some constructive criticism or any thoughts/suggestions you might have. Basically this is the idea: start a website where you sell lottery tickets to the public (or rather they pay you to buy them) with the intention of pooling together all the tickets purchased on the site. If one or more wins, then everyone who purchased would split the winnings proprtionally. The site would make money by charging a commission on the winnings (say maybe 1-2% of whatever the jackpot is) and also on the ticket purchasing (take in $100 worth of $1 tickets but only purchase 98, so make $2, same 2% commission). First off, I haven't done any research yet, does anyone know if this type of thing exists already on the internet? Is it legal in the US? Do I need a license to purchase lottery tickets for people? Obviously all the money would be made on hitting a winning number, which we all know may never happen..but if enough people bought tickets on the site it might be worthwhile. It doesn't seem like the costs for running this type of site would be that high, I would obviously need some type of payment service which is very cheap and then advertising costs. Anyway, what do you think? Thanks in advance.

[swede123]

People who buy most lottery tickets aren't looking to maximize return and reduce risk and such; they're looking to score that big one so they don't have to work anymore. Your system spreading the winnings among all the participants would basically eliminate the main reason these people play the lottery. Back to the drawing board.

Swede

[Ulysses]

Why would anyone want to use this? People don't play the lottery to increase their chances of winning $1000, they play it to win millions.

[RacersEdge]

If someone was looking to looking for a smaller payout with more chance of winning, they could just pay the "Pick 3" or whatever other spinoffs you can get besides the main lottery. It basically already exists.

[CrazyEyez]

People in my office regularly pool Powerball tix. When the jackpot is large, they get ~100 tix, I think. I never go in on it. If I win that sucker, I wanna win it solo. So there seems to be at least a small market for this kind of thing. But I think what would keep people from it more than anything is they'd have to trust a total stranger.

[jakethebake]

[ QUOTE ]
People in my office regularly pool Powerball tix.... I never go in on it. When I win that sucker, I wanna win it solo.

[/ QUOTE ]

[texaspimp]

The only value that I can see would be for people in states without Powerball or with Mega Millions (or whatever other multi-state lottery).

For instance, Indiana has Powerball, Ohio does not. Ohio has another multi-state game that Indiana doesn't have.

Some people may find value in that.

[IlliniRyRy]

You all definitely have a point, there might not be such a huge market for this. Also...it's highly likely a jackpot would never ever be hit, so the only way I'd be making money on this is by charging a commission. It would have to be at least 10% to make it worthwhile, and even that's a stretch. If I sold 10,000 tickets on the site, that would be a measly $1k. Meh. Scrap it.

[Sakuraba]

[ QUOTE ]
Why would anyone want to use this? People don't play the lottery to increase their chances of winning $1000, they play it to win millions.

[/ QUOTE ]

In theory, you are right, but there are a lot of really stupid people. In my office, there is a large group of people who pool tickets every week for the lottery. They might be doing this for the comradery of being part of the group or because they would prefer a higher chance at a somewhat smaller (but still much larger than $1000) prize, but I actually think they might be doing it because they think they are getting some sort of "deal". I am out for a few days, but I am going to ask them when I get back.

[Uglyowl]

I don't trust the internets either.

[slickpoppa]

This idea is so 1999

[Ulysses]

[ QUOTE ]
[ QUOTE ]
Why would anyone want to use this? People don't play the lottery to increase their chances of winning $1000, they play it to win millions.

[/ QUOTE ]

In theory, you are right, but there are a lot of really stupid people. In my office, there is a large group of people who pool tickets every week for the lottery. They might be doing this for the comradery of being part of the group or because they would prefer a higher chance at a somewhat smaller (but still much larger than $1000) prize, but I actually think they might be doing it because they think they are getting some sort of "deal". I am out for a few days, but I am going to ask them when I get back.

[/ QUOTE ]

There's a huge difference between splitting w/ 10 (or 50) people to increase your chances at millions and splitting w/ thousands of people to increase your chances at winning a small amount.

[oneeye13]

if i were to start this business, i wouldn't buy the lottery tickets at all. just claim they were losers.

[jakethebake]

[ QUOTE ]
if i were to start this business, i wouldn't buy the lottery tickets at all. just claim they were losers.

[/ QUOTE ]

Are you from nigeria by chance?

[SmileyEH]

[ QUOTE ]
what do you think?

[/ QUOTE ]

Very bad idea.

-SmileyEH

[Indiana]

I've got a better idea, ice cream gloves...Check it out.

Indy

[Sakuraba]

[ QUOTE ]
There's a huge difference between splitting w/ 10 (or 50) people to increase your chances at millions and splitting w/ thousands of people to increase your chances at winning a small amount.

[/ QUOTE ]

I was thinking he would probably offer smaller pools, not just one monster pool. (first 100 grouped together or something like that)

[ttw22]

[ QUOTE ]
I've got a better idea, ice cream gloves...Check it out.

Indy

[/ QUOTE ]

I have a better idea. Do you know how many people has seen Lord of the Rings? Hundreds. I am going to write the book version of the Lord of the Rings.

[[censored]]

it has some promise because you virtually have 0 cost. You need to get a lawyer involved if you are serious.

[Alobar]

This idea isnt very good. People are playing the lottery to win big. If they wanted to spend a dollar for a chance to win $5 or $100 they buy scratch tickets.

I had a better idea. A service that buys your lottery ticket every week, that way you never have to worry about it, and your numbers will always be in play. You could either charge a flat rate for this service, or a percentage of the winning ticket. Also the store where you buy the lottery tickets gets a kickback from the lottery when they sell a winning ticket, so you could work out a deal with a certain place that you would get all your lottery tickets from there, and thus make more money.

Im just to lazy to do this, or even find out the legalities of it.

[cbfair]

Search for lottery pools, I think this has already been done.

Not saying it would be unsuccessful, but there is some competition and much of it is non-profit (no vig).

[jackdaniels]

[ QUOTE ]
I have a better idea. Do you know how many people has seen Lord of the Rings? Hundreds. I am going to write the book version of the Lord of the Rings.


[/ QUOTE ]

LMAO!!!!!!!

[Slacker13]

This little scheme has been around for years. Last i heard most everyone who did this is now in jail. Good luck.
check out this site if you want more info
web page (http://lottogrouponline.com/)