Gaming Application

LOTTERIES

This invention also applies to inter- and intra-state lotteries.  In this example, a lottery operator can offer a multi-state lottery in which lottery tickets are sold in different states (where each state becomes a distributor selling through various locations).  Each ticket might comprise, for example, a $1 wager.

In this example, ten states each sold lottery tickets.  The total of all tickets sold was $300M (i.e. the "total wagers" or GPMP).

The host (lottery operator) applies a take-out of 32% of the total tickets, or $96M.  The host keeps 2% of the total tickets sold, or $6M as an administrative fee, and returns the remaining $90M to the states (based upon the net 30% take-out rate) in proportion to the total tickets sold in each state.  In this manner, each state is incentivized to sell as many tickets as possible, as each state is returned a percentage of its lottery ticket sales.  

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After application of the $96M take-out, the return pool or NPMP to be paid to the one or more winners is $204M.  Thus, for example, in this base configuration if there were a single winner, that winner would be paid $204M.  In accordance with the invention, one or more of the states might offer their bettors a modified payout based upon a modified take-out rate.  For example, Iowa might offer one or more bettors who purchase lottery tickets in that state a payout which is based upon a take-out rate of 25% rather than 30% (in one embodiment, the state or non-host distributor might set the altered take-out rate, and in others, the bettor might be permitted to select their own take-out rate).

Of course, losing lottery tickets are not paid.  If the winning lottery ticket were purchased in Iowa at the modified 25% rate, the winner would be paid an extra 5%.  The modified or extra winning amount may be offered to the bettor based upon the total pool or the state's sub-pool.  For example, if Iowa offered to pay the increased winnings based upon the total pool, the bettor would be paid and extra 5% of the total pool or 15M.  Thus, the total payout to the bettor would be the base payout of $204M plus $15M, or $219M.  On the other hand, if Iowa offered to pay the increased winnings based upon the Iowa sub-pool, the bettor would be paid an extra 5% of Iowa's contributed handle ($18M), or $0.9M.  Thus, the total payout to the bettor would then be the base payout of $204M plus $0.9M or $204.9M