Method and system for increasing expected rate of return and maximum payout in a game with one or more players
OwnerMarc Michael Grozinventor
Life of this patent
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Abstract
A method for increasing the expected return of a game, such as a lottery, comprises selling tokens that have a residual value. The price of the tokens is divided between a prize pool and an investment fund. The game is played and the prizes are awarded from the prize pool. Assets are purchased with the investment fund such that the overall expected return of the game over a given period of time is positive. A commitment is made to provide the cash value of the assets to the owners of the tokens at the end of the period of time.
Claims11
A method for increasing the expected return of a game, said game comprising a large gaming prize, said large gaming prize being backed at least in part by a payment augmentation module, said payment augmentation module comprising:
- the characterization of a lottery backed security;
- the issuance of said lottery backed security;
- and
- the selling of said lottery backed security,
- said method comprising:
- a) offering to sell tokens to a plurality of players to participate in said game, each of said tokens having a price and a designated residual value;
- b) receiving financial consideration from said players, said financial consideration being equal to the number of said tokens purchased by each of said players times said price of said tokens;
- c) allocating a first portion of said financial consideration to a prize pool, said first portion being greater than zero, said prize pool to be distributed among winners of said game, and said prize pool being less than said large gaming prize;
- d) conducting said game such that there is an outcome of said game wherein said outcome comprises the designation of a portion of said tokens as winning tokens and/or said outcome additionally comprises the designation of at least one of said winning tokens as a large gaming prize winning token;
- e) awarding said prize pool to the owners of said winning tokens if said outcome comprises said designation of winning tokens and awarding said large gaming prize to the owners of said at least one large gaming prize winning token if said outcome comprises said designation of said at least one large gaming prize winning token, wherein at least a portion of said large gaming prize is paid by said payment augmentation module;
- f) allocating a second portion of said financial consideration to purchase assets, said assets having a positive expected return over a period of time such that the expected value of said assets at the end of said period of time is greater than or equal to said financial consideration less said prize pool;
- g) purchasing said assets with said second portion of said financial consideration;
- h) assigning said assets to said tokens, said assignment to each token being in
- proportion to the price of each of said token times the residual value of each of said tokens;
- i) committing to provide the current market value of said assets at the end of said period of time to the owners of said tokens.
Dependencies are inferred from the claim text.