Lottery system with tax paid provision
OwnerSteve Bromfieldinventor
Life of this patent
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Abstract
A system and method for conducting a lottery operate by offering a lottery ticket at a price that is somewhat higher than the price of a standard lottery ticket. All or some of the extra amount is used to pay a premium on an insurance policy or otherwise fund a tax reimbursement pool that will be used to reimburse any lottery winner or winners who purchased the higher-priced ticket for at least a portion of the amount of taxes withheld from the prize winnings. In the event that the tax reimbursement is considered income of the winner under applicable law, the winner could also receive a second reimbursement for the tax on the amount of the first tax reimbursement. A reiterative tax reimbursement cycle could, but does not necessarily, continue until the tax liability of the winner is merely pennies.
Claims16
A lottery system that generates a set of winning numbers and pays a grand prize to one or more winners who selected the winning numbers, said system comprising:
- a first ticket form selling for a first ticket price;
- and
- a portion of the first ticket price used to fund a tax pool, which will be used to pay a reimbursement amount to the winner or winners for at least a portion of applicable federal, state, and local taxes on the grand prize.
A lottery system that generates a set of winning numbers and pays a grand prize to one or more winners who selected the winning numbers, said system comprising:
- a choice wherein consumers must decide whether to purchase a first ticket form selling for a first ticket price or a second ticket form selling for a second ticket price;
- a lottery fund, a portion of which is a prize pool which receives a portion of the first and second ticket prices allocated to paying winners of the lottery;
- a tax pool which receives an excess amount of the first ticket price over the second ticket price, wherein at least some of the funds maintained in the tax pool are used to reimburse the winner or winners who purchased the first ticket form for at least a portion of applicable federal, state, and local taxes on the grand prize;
- a payment of the winnings to all winners;
- and
- a reimbursement at least a portion of the applicable federal, state, and local taxes withheld from the grand prize on behalf of any winner who purchased the first ticket form.
A method for conducting a lottery game, said method comprising:
- offering a first ticket form for a first ticket price;
- allocating a first portion of the first ticket price to a tax pool, at least a portion of which will be used to reimburse the winner or winners for at least a portion of applicable federal, state, and local taxes on the grand prize;
- allocating a second portion of the first ticket price to a lottery fund, a portion of said lottery fund comprising of a prize pool, from which any winner or winners are paid;
- conducting a drawing to determine winning numbers;
- paying the winner or winners from the prize pool;
- and
- reimbursing any winner or winners for the applicable federal, state, and local taxes withheld from the grand prize.
A method for conducting a lottery game, said method comprising:
- offering a first ticket form for a first ticket price;
- allocating a first portion of the first ticket price to a tax pool, at least a portion of which will be used to reimburse the winner or winners who purchased the first ticket form for at least a portion of applicable federal, state, and local taxes on the grand prize;
- allocating a second portion of the first ticket price to the lottery fund, a portion of said lottery fund comprising of a prize pool, from which any winner or winners are paid;
- offering a second ticket form for a second ticket price;
- allocating the entire second ticket price to go to a lottery fund, a portion of said lottery fund comprising a prize pool, from which any winner or winners are paid;
- conducting a drawing to determine the winning numbers;
- paying the winner or winners from the prize pool;
- and
- reimbursing any winner or winners for the applicable federal, state, and local taxes withheld from the grand prize.
Dependencies are inferred from the claim text.