Rather, the requisite commonality is evidenced by the fact that the fortunes of all investors are inextricably tied to the efficacy of the promoters. This is referred to as vertical commonality. This language may be interpreted as requiring vertical commonality in Kansas. Clearly, horizontal commonality exists in this case. The investors in the 6000 group pool their money and share in the profits.
Vertical commonality is also present.
The Canadian Express Club purchases the lottery tickets for the shareholders and does all the paperwork and bookkeeping. In addition, the Canadian Express Club recruits investors to insure the success of the pool for all the shareholders. Although the Canadian Express Club has no influence over the actual lottery, it does provide a way for the investors to play the lottery on a grand scale with increased odds of winning. The effectiveness of the Canadian Express Club in purchasing the tickets, bookkeeping, and recruiting participants is tied to the fortunes of the investors. The third requirement of an investment contract is an expectation of future profits.