AU2007100144A4 - A method of gaming with options for risk and return - Google Patents

Description

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AUSTRALIA

PATENTS ACT 1990 COMPLETE SPECIFICATION FOR AN INNOVATION PATENT

ORIGINAL

Name of Applicants: Actual Inventor: 2G Gaming Pty Limited Marc Amour Address for Service is: SHELSTON IP Margaret Street SYDNEY NSW 2000 CCN: 3710000352 Attorney Code: SW Telephone No: Facsimile No.

(02) 9777 1111 (02) 9241 4666 Invention Title: A METHOD

RETURN

OF GAMING WITH OPTIONS FOR RISK AND Details of Associated Provisional Application No(s). 2006100877 (dated 13 Oct 2006) and 2006903031 (dated 02 Jun 2006) The following statement is a full description of this invention, including the best method of performing it known to us File: 49810AUP07 5011048461 .DOC/5845 -la- A METHOD OF GAMING WITH OPTIONS FOR RISK AND RETURN Field of the Invention The present invention relates to a method and system for gaming, which is intended to be interpreted in the broadest sense, as encompassing the fields of gambling, gaming, wagering, betting and competitions of skill or knowledge.

Background to the Invention The following discussion of the prior art is intended to place the invention in an appropriate context and to allow the unique characteristics and advantages of it to be more fully understood. However, any discussion of the prior art throughout the specification should in no way be considered as an express or implied admission that such prior art is widely known or forms part of common general knowledge in the field.

Numerous, gaming activities are known and have been implemented in a variety of different forms. One broad category of gaming activity is commonly referred to as "para-mutual" gaming. In this form, all entry fees or bets are combined into a pool, the operator's commissions, fees and charges are deducted from the pool, and the residual amount corresponding to the prize pool is distributed among the winners of the game, according to predetermined criteria. Lotteries, totalisators and the like fall into this category.

A characteristic feature of para-mutual gaming is that the quantum of winnings is not known in advance, since this will depend upon the number of participants in the gaming activity, and the level of participation of each, which are indeterminate at the outset. Another characteristic feature is that, aside from any ad hoc instances of crosssubsidisation by the gaming operator, the total amount returned to the entrants collectively as prize-money is necessarily less than the total amount received from the entrants collectively as entry fees or bets, due to the fees and charges of the operator as well as taxes and duties of governments and jurisdictional authorities, being deducted from the prize pool, prior to distribution. These fees and charges are significant, often in the order of 15% to 40% of the total prize pool, which is a particular disadvantage of this form of gaming activity, in so far as the participants are concerned.

Another broad category of gaming activity is "fixed-odds" based, usually referred to as wagering, which is typical of most types of sports betting and bookmaking operations. In this form, the odds of a particular outcome are predetermined by the operator when each bet is placed, so that the quantum of winnings is known at the outset, irrespective of the number of bets subsequently placed by other participants. In this case, the total amount returned to the participants collectively as prize-money is not necessarily less than the total amount received from the entrants collectively as bets, and in that sense, the operator bears some risk.

However, the operator endeavours, through experience, to retain a predetermined margin of profit on average over time, and this would typically be in the order of 8% to A further disadvantage with both of these forms, and indeed most other forms of gaming, is that in the absence of a winning outcome, the initial value of the bet or participation fee is lost to each participant and fundamentally, the odds are statistically weighted against the players.

Against this backdrop, it is well-known that some personality types fall victim to gaming at significant personal and wider social cost. Others are reluctant to participate in such activities at all, either as a matter of principle or due to inherent aversion to risk, and thereby miss the entertainment value and the opportunity to participate in the upside of winning outcomes.

It is an object of the present invention to overcome or ameliorate one or more of the disadvantages of the prior art, or at least to provide a useful alternative.

Disclosure of the Invention Accordingly, in a first aspect, the invention provides a method of gaming including the steps of: receiving entries and corresponding entry fees from multiple entrants in relation to a gaming activity having an unknown outcome; providing at least one of the entrants placing an entry with an opportunity to select between a plurality of unique risk profiles, wherein each risk profile defines a proportion of the entry fee that is refundable on the basis of predetermined refund criteria and a complementary proportion of the entry fee that is placed at risk, and wherein the selected risk profile affects one or more characteristics of a prize winnable Son the basis of that entry; determining one or more winning outcomes of the gaming activity; distributing prizes between one or more winning entrants corresponding to said winning outcomes, in accordance with a predetermined outcome-based distribution protocol; and distributing refunds to one or more eligible entrants on the basis of the predetermined refund criteria.

Preferably, all entrants are provided with the opportunity to select between the S 10 plurality of unique risk profiles.

Preferably the plurality of risk profiles include a first risk profile for which 100% of the entry fee is refundable and a second risk profile for which 100% of the entry fee is placed at risk. In some embodiments, the plurality of risk profiles are constituted by these first and second risk profiles. In other embodiments, there are additional or alternative risk profiles. For example, in some embodiments, the plurality of risk profiles include a at least one risk profile for which X% of the entry fee is refundable and Y% of the entry fee is placed at risk, wherein X Y 100 and wherein 0 X 100.

In some embodiments a selection of risk profiles are made available by a game operator, and an entrant selects between these available risk profiles. In some embodiments one or more risk profiles are user-defined.

Preferably at least one hybrid entry is provided wherein a predetermined proportion of the corresponding entry fee is refundable, and a residual proportion of the entry fee is at risk, the maximum value of prize winnable for the hybrid entry being related to the proportion of the entry fee that is placed at risk, whereby an entrant selecting to place a relatively greater proportion of the entry fee at risk is afforded an opportunity to win a prize of greater value. However, it should be appreciated that the difference in value may be either perceived or real, and in some embodiments, the potential prizes conferred by different risk profiles may simply be different in some respect, rather than necessarily being of greater or lesser relative value.

Preferably, for a given entry: in the case of participation on the basis that the entry fee is refundable, the participation provides a chance to win one or more first category prizes; in the case of participation on the basis that the entry fee is placed at risk, the participation provides a chance to win one or more second category prizes; and at least one second category prize is greater in value than the or each first category prize.

In some embodiments each second category prize includes a corresponding first category prize plus a bonus portion. This bonus portion need not be greater in value than the first category prize itself.

In some embodiments the gaming activity includes a first sub-activity for determining one or more winning outcomes in relation to the or each first category prize, and a second sub-activity for determining one or more winning outcomes in relation to the or each second category prize.

Preferably at least one second category prize is greater in value than the or each first category prize.

Preferably, the method includes the further steps of: combining the entry fees into an entry fee pool; investing at least a proportion of the entry fee pool for a period of time to generate an investment return; and returning to the entrants collectively a total prize pool comprising prizes and refunds net of any operator contributions, that is at least equal in value to the entry fee pool net of any applicable taxes or duties, by combining at least a proportion of the entry fee pool with at least a proportion of the investment return.

The terms "gaming" and "gaming activity" as used herein are intended to be interpreted broadly, encompassing any form of gambling, gaming, or wagering, including but not limited to:lotteries and lottery type games such as "Lotto", "Oz Lotto", "Powerball", "Art Union Lotteries", and the like; traditional draw lotteries, instant lotteries and "scratch" lotteries; raffles; "Keno", "Bingo" and "Housie" style games; sports betting activities and football pools; events-based betting activities involving such outcomes as political contests, Royal or noteworthy births, weather outcomes and natural phenomena; totalisators; sweepstakes for any events such as horse, dog or any other form of racing, sporting contests, political contests and the like; PC-based and other electronic gaming contests, including online skill-based gaming contests; other contests of skill or knowledge; chance-based games played on poker and other electronic gaming machines; and S any games of skill and/or chance involving one or more unknown outcomes, whether para-mutual or "fixed-odds" based.

A particular distinction is made, for the purpose of this specification, between gaming activities and investment activities. A gaming activity is an activity whereby a person obtains an entry for the primary purpose of participating in a game of chance or wagering on an event having an unknown outcome. An investment activity is an activity where a person makes an investment for the primary purpose of seeking a financial reward based on investment return criteria.

The terms "invest", "investing" and the like as used herein are intended to be afforded a broad interpretation, including but not limited to investment in any financial or real asset or property of any type whether securitised or otherwise, with value denominated in any currency or combination of currencies, whether listed on a public exchange or unlisted, including the following, as well as warrants, options, derivatives, deferred purchase contracts, instalment receipts and the like over any of the following:deposits with third parties whether interest-bearing or otherwise and whether held with a financial institution or some other party; mortgages, debt instruments or securities of any type; any form of American Depository Receipts or similar instruments or asset classes as may be available from time to time in any jurisdiction; promissory notes, bills of exchange, convertible notes or any form of debt; S convertible or other bonds; -6- 0 preference shares, redeemable preference shares, stocks, equities or shares of any class whether fully or partly paid up; warrants, options, derivatives, deferred purchase contracts, instalment receipts and the like; 0 options, warrants or similar instruments convertible into stocks, shares or equities of any sort; 0 warrants, options, derivatives, deferred purchase contracts, instalment receipts or the like over any index relating to any matter including but not limited to stocks, shares or equities of any sort or futures or any financial instrument or financial asset; currency or interest rate swap agreements, forward interest rate agreements and the like; real property or property of any other kind including intellectual property; any contract, arrangement or instrument of any type which confers a benefit of value in relation to an item or items of value; futures contracts and the like in relation to any thing, item or matter; currencies; precious metals; works of art and any other valuables such as stamps, coins or jewels; and any other form of investment offering at least the potential for return on capital over a period of time, whether or not the capital is guaranteed, and whether or not a return on capital is guaranteed.

Additionally, the terms "invest", "investing", "investment" and the like, as used herein, should be construed as including, but not limited to, the use of one or more money management techniques to increase an available amount of funds and investing the resultant increased available amount of funds.

It should also be appreciated that the "investment return" need not be cashbased or even financial in nature, provided merely that it has some intrinsic or perceived value in the broad context of the gaming activity.

The term "entry" is intended to be interpreted broadly in relation to participation across the full gamut of gaming and wagering activities as defined above, -7including but not limited to bets, wagers, entrance fees, participation fees, deposits and the like.

The term "pool" is also intended to be given the broadest possible interpretation, covering the physical pooling of bets, entry fees or other value components into a single deposit account or other investment product, as well as the virtual pooling of such components across multiple accounts or multiple investment products, whether those components are deposited simultaneously or at different times, and whether those components are invested over the same or different time frames.

The term "refund" as used herein is intended to encompass a full or partial refund of the value component of an entry, whether in the form in which it was contributed or in some other form. Refunds may therefore be in cash or in kind. In particular, in some embodiments of the invention, a refund may take the form of a limited rollover entry for a specified number of subsequent gaming activities of the same or different type, an unlimited rollover entry for an indeterminate number of subsequent gaming activities of the same or different type, or the maintenance of a limited rollover entry or an unlimited rollover entry from a previous gaming activity.

The term is also intended to encompass the option of a refund, in whatever form, whether or not that option is exercised at any particular point in time, or at all. Further, the term "refund" is intended to encompass the concept of a guaranteed prize, whether as an alternative to, or in addition to, a refund based on the value component of the entry itself. It is therefore possible that a refund in the context of particular gaming activities may exceed the full value component of the corresponding entry.

The term "guaranteed" as used in connection with refunds is intended to be broadly construed, as applying whether the associated refund may or may not be underwritten by the gaming operator, a financial institution or by some other party, and whether or not there may be some residual risk associated therewith.

The terms "taxes" and "duties" as used herein are intended to encompass any relevant Federal, State and/or local government taxes, duties or imposts as well as levies or charges applied by intermediaries or other third parties connected with the gaming activity, that are essentially non-discretionary in so far as the gaming operators or players are concerned.

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The terms "bonus entry", "bonus entries" and the like are intended to be broadly construed as encompassing both physical and virtual bonus entries, as well as any other physical or virtual mechanism, mathematical algorithm, software program, I programming subroutine or any combination thereof that has an equivalent effect of increasing the chances, in some defined way, of a particular entrant winning the associated gaming activity, relative to those of one or more other entrants, or categories of entrants. A bonus entry may also provide the opportunity for a particular entrant to participate in a larger prize pool relative to one or more other entrants, on the basis of the same or different chances of winning.

References to the "option" of either a predetermined refund or a predetermined number of bonus entries should be understood, subject to the context, to encompass scenarios where such options are provided in a single entry wherein a proportion of the entry fee is refundable and a complementary proportion is at risk, (whether the relative proportions are predetermined by the gaming operator or nominated by the entrant), as well as scenarios where different types of entry are submitted according to whether the entry fee is refundable or at risk. In the latter scenario, it should be appreciated that the different types of entry may be submitted through the same or different entry terminals or points of sale without departing from the scope of the invention.

References to "proportion", "predetermined proportion", "predetermined number" and the like should be understood to encompass any proportion ranging from 0% to 100%, inclusive. Such parameters may be predetermined by the gaming operator, the entrant or by a third-party.

References to "entry fee pool", "investment pool" and "investment capital" are, subject to the context, used interchangeably.

Preferably, the entries are in the form of bets. The value components of the entry fees are preferably monetary in nature, and more preferably, are cash-based. The investment return preferably takes the form of investment income, and the prize preferably takes the form of cash prize-money. It should be appreciated, however, that the bets, entry fees or value components, investment returns and the prize may take a variety of other forms. For example, the prize may take the form of product from a sponsoring or operating entity, shares, gift vouchers, lottery tickets, financial assets or other instruments or assets of value. The prizes may also be distributed directly, or -9may alternatively be distributed to an intermediate holding entity, such as a guardian or trust, as may be appropriate in the case of minors.

Preferably, the method includes the further steps of: designating at least a proportion of the entry fee pool as a second component of the prize; and distributing the second component of the prize on a predetermined basis between entrants whose entries correspond to winning outcomes of the gaming activity.

In one optional variation of this form of the invention, the guaranteed proportion of a bet is not refundable in the event that the associated entry corresponds to one of the winning outcomes.

Preferably, the second component of prize-money excludes from the capital the guaranteed proportions of all of the bets having a guaranteed refund status.

Preferably, the method includes the step of deducting any costs or commissions attributable to operators or administrators of the gaming activity exclusively from the investment income prior to designating the first component of prize-money, as distinct from deducting such costs or commissions from the investment capital.

In some implementations of the invention, a prize may be available to either all or a significant proportion of the entrants, in addition to the guaranteed refund status applicable to the initial bet or participation fee. It will be appreciated that distributing the prize pool among a greater proportion of entrants would correspondingly diminish the magnitude of the prize money available for distribution to some or all of the individual entrants. These parameters therefore need to be determined to provide appropriately attractive incentives for prospective entrants, having regard to the specific gaming activity and its commercial context.

In one optional implementation of the invention, the method includes the further steps of applying at least a proportion of the bets without guaranteed refund status to fund interest or other financing expenses on a significantly larger amount of borrowed funds, and deploying at least a proportion of those borrowed funds to place the bonus bets on behalf of the respective entrants. These steps are preferably undertaken by the game operator, without any direct involvement from the entrants and without exposing the entrants to any liability in respect of the borrowed funds. This mechanism thereby allows those entrants who are willing to forego the guaranteed refund status of their bets to substantially leverage or multiply their level of participation in the gaming activity, without assuming liability in connection with the borrowed funds. Preferably, the entries are in the form of bets.

The value components of the entry fees are preferably monetary in nature, and more preferably, are cash-based. The investment return preferably takes the form of investment income, and the prize preferably takes the form of cash prize-money. It should be appreciated, however, that the bets, value components, investment returns and the prize may take a variety of other forms. For example, the prize may take the form of product from a sponsoring or operating entity, shares, gift vouchers, lottery tickets, financial assets or other instruments or assets of value. The prizes may also be distributed directly, or may alternatively be distributed to an intermediate holding entity, such as a guardian or trust, as may be appropriate in the case of minors.

In one preferred form of the invention, each bet is categorised as either 100% guaranteed refund status, or 100% at risk status, at the option of the entrant. In alternative forms, however, each bet may be selectively apportioned between these categories, either in predetermined proportions set by the gaming operator, or flexibly as determined by the participant.

Preferably, the method includes the further step of providing the option of placing a recurring or "rollover" bet in relation to recurring gaming activities, whereby the bet is effective for the current gaming activity and for a predetermined number, or alternatively for an unlimited number, of subsequent gaming activities of corresponding type, unless and until the entrant wins a prize. In one preferred form, a recurring or rollover bet may be designated with a guaranteed refund status, whereby the bet is redeemable at full cost or other predetermined value at any time and in any relevant gaming activity in the event of a non-winning outcome.

A particularly preferred form of the recurring bet option provided by the method of the invention incorporates an unlimited or "perpetual" rollover bet option, again in respect of recurring gaming activities, whereby the bet is effective for the current gaming activity and for an indefinite number of subsequent gaming activities of corresponding type, unless and until the entrant: -Ilelects to redeem the bet at full cost or other predetermined value at any time after the outcome of the first relevant gaming activity; or the gaming activity ceases to operate in which case, again, the bet is redeemable at full cost or other predetermined value.

In one optional modification of this form of the invention, the recurring bet also ceases to be effective if and when the entrant wins a prize.

In another preferred variation, the method of the invention provides a mechanism for dealing with unclaimed prize money, whereby such money is effectively put back into a subsequent game or games, in the form of supplementary guaranteed return entries on behalf of the winning player. In this way, the capital amount of the original winnings is preserved indefinitely and is available to be redeemed by the winning player, should that player appear at a later time to claim the prize. In the meantime, the re-investment of those winnings through the supplementary entries generates additional investment income, and hence additional prize-money, for distribution as winnings in future games. In this way, any unclaimed prize money is employed primarily for the benefit of the players, as distinct from the gaming operator.

An alternative preferred embodiment provides another option for dealing with unclaimed prize money whereby such money is deposited into an account specifically established to receive such funds. Optionally, some or all of the investment returns generated by the unclaimed prize money account may be added to the prize pool for distribution in subsequent games.

In another preferred form, the gaming method is adapted for use in connection with fixed-odds betting. In one preferred implementation of this form of the invention, the nominal fixed-odds are effectively escalated or enhanced for winning bets, by distribution of the investment income as supplementary prize-money. In an alternative implementation, the entrant placing a fixed-odds bet receives a complimentary sweepstakes ticket, conferring an entitlement to supplementary prize-money drawn from the investment income, in the event of a winning outcome.

In a further preferred form, the method is adapted to combine fixed-odds betting in respect of a particular outcome of the gaming activity, with entries of guaranteed refund status in a sweepstake in respect of other outcomes of the same 12gaming activity. By effectively combining the invention with aspects of both fixedodds and para mutual betting, this method provides a unique mechanism whereby entrants may either "hedge" their fixed-odds bets against losses, and/or enhance the potential returns from a fixed-odds bet.

In a second aspect, the invention provides a system for implementing the method of gaming as previously defined, said system including: a computer processor for receiving inputs from a plurality of computerised terminals adapted to receive entries and associated value components from multiple entrants in relation to a gaming activity having an unknown outcome; a computer processor adapted to combine the value components to create a pool of investment capital; a computer processor adapted to invest at least a proportion of the investment capital for a period of time to create an investment return according to predetermined criteria; a computer processor adapted to designate at least a proportion of the investment return as a first component of a prize according to predetermined criteria; and a computer processor adapted to allocate the first component of the prize between entrants in accordance with a predetermined outcome-based distribution protocol, whereby winning entries correspond to winning outcomes of the gaming activity.

It will be appreciated that the computer processors as defined may be constituted as a single composite processor such as a central server or as separate and discrete processing units and in the latter case, the discrete processing units may be substantially co-located, or disposed at different locations. Preferably, one or more of these processors, or additional processors if required, are used to implement one or more of the various additional steps of the gaming method, as previously defined.

The terminals are preferably connected to the processor or processors by means of a network, such as a local area network (LAN), a wide area network (WAN), a wired or wireless telecommunications network, the Internet or successor networks.

Preferably, one or more of the computer processors are communicatively connectable to a financial services computer system associated with a financial 13services provider. In one preferred embodiment, the connectable computer processor is adapted to communicate data indicative of the investment capital pool to the financial services computer system. In a particularly preferred embodiment, the connectable processor is adapted to: receive said inputs over a predetermined time period; extract from each of the inputs corresponding individual betting amounts; perform a running summation of said individual betting amounts so as to calculate an investment pool amount as received within said time period; and at or near the conclusion of said time period, to communicate said investment pool amount to the financial services computer system.

Preferably, the predetermined time period corresponds to a minimum period of time over which the financial services provider calculates the investment income.

Advantageously, by providing the option of bets with a guaranteed refund status, the gaming method and system of the invention allow a mingling, within the same gaming activity, of traditional participants who are prepared to lose their bets for the sake of potentially higher winnings, and those who, due to inherent risk aversion or for other reasons, would traditionally not have been prepared to lose betting or investment capital in gaming activities and so would have tended to avoid or at least minimise their exposure to such activities.

In a third aspect, the invention provides a system for implementing the method of gaming as previously defined, said system including: a first interface for receiving data indicative of entries and corresponding entry fees from multiple entrants in relation to a gaming activity having an unknown outcome, wherein at least one entrant placing an entry is provided with an opportunity to select between a plurality of unique risk profiles, wherein each risk profile defines a proportion of the entry fee that is refundable on the basis of predetermined refund criteria and a complementary proportion of the entry fee that is placed at risk, and wherein the selected risk profile affects one or more characteristics of a prize winnable on the basis of that entry; a first processor for determining one or more winning outcomes of the gaming activity; -14-

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a second processor that is responsive to the first interface and the first processor for determining how to distribute prizes between one or more winning entrants corresponding to said winning outcomes, in accordance with a predetermined (outcome-based distribution protocol; a third processor that is responsive to the first interface and the first processor for determining how to distribute refunds to one or more eligible entrants on the basis of the predetermined refund criteria; and _a second interface that is responsive to the third processor and the fourth processor for providing a signal indicative of instructions for distributing the prizes and the refunds.

The term "interface" is used in this context as a generic descriptor for a component having a communication-related functionality. In some embodiments, two or more of the interfaces mentioned above are defined by a common component, such as a network card or other communications interface. In some embodiments, one or more of the interfaces are software based, and take the form of software components used for receiving and/or providing signals within a software application. In particular, it should be appreciated that the term "interface" does not necessarily imply a user-interface.

Preferably, determining the one or more winning outcomes of the gaming activity includes being responsive to a signal indicative of the one or more winning outcomes.

Preferably, all entrants placing entries are provided with the opportunity to select between the plurality of unique risk profiles.

Brief Description of the Drawings Preferred embodiments of the invention will now be described, by way of example only, with reference to the accompanying drawings in which: Figure 1 is a schematic representation of a gaming system according to a first embodiment of the present invention; Figure 2 is a schematic illustration of an implementation of the system of Figure 1; Figure 3 is a flowchart illustrating a gaming method according to another embodiment of the present invention; Figure 4 is a flowchart illustrating a gaming method according to another embodiment of the present invention; Figure 5 is a schematic representation of computer systems involved in a further embodiment of the invention; Figure 6 is a schematic representation of a gaming system according to another embodiment of the present invention; Figure 6A is a schematic representation of a gaming system according to another embodiment of the present invention; Figure 7 is a flowchart illustrating a gaming method according to another embodiment of the present invention; and Figure 8 is a flowchart illustrating a gaming method according to another embodiment of the present invention.

Preferred Embodiments of the Invention Figure 1 schematically illustrates a gaming administration system 1, according to a first embodiment of the invention. The system 1 receives entries 2 from a plurality of entrants, who are also referred to in this document as players 3. Each entry has an associated value component, which in this embodiment is typically a cash-based monetary component in the form of an entry fee or bet. In this embodiment, the entries relate to a modified para-mutual type gaming activity having an unknown outcome, such as a lottery, or totalisator. The system combines the monetary components to provide an investment capital pool 5. The funds in the capital pool 5 are divided into an investment capital portion 6 and a non-investment capital portion 7. Determining the split between the investment and non-investment capital portions 6 and 7 is primarily an exercise in risk management undertaken by the operators of the gaming activity. In some embodiments, all of the funds received and accumulated in the capital pool are invested, such that the monetary value of the capital pool corresponds to the monetary value of the investment capital portion 6.

The investment capital 6 is then invested through an investment vehicle 8 for a period of time, which period may be predetermined or subject to predetermined -16criteria. This investment generates an investment return, in the form of investment )income 9. A portion of this investment income is designated as a first component of a prize. In response to the outcome of the gaming activity, this first component is (Ni distributed between one or more of the players in accordance with a predetermined outcome-based distribution protocol.

More specifically, at the end of the predetermined investment period, the investment capital 6 and investment income 9 are withdrawn from the investment _vehicle. The gaming administrator's fees and commissions 10 and any investment costs 11 are then deducted from the investment income 9, to determine the net investment income, which forms a prize portion 12 of the investment income. The prize portion 12 of the investment income is then added to a prize pool 13, together with the respective investment capital and non-investment capital portions 6 and 7.

Once the outcome of the gaming activity is known, or at a subsequent predetermined time, the prize pool 13 is distributed between the winning players (if any) in accordance with the predetermined outcome-based distribution protocol.

The fees, commissions and investment costs are preferably structured so that they are less in totality than the investment income, and consequently, the prize pool 13 has a total monetary value which is at least equal to, and is more preferably greater than, the initial capital pool 5, by an amount corresponding to the net investment income. This assumes a positive return on investment, which can effectively be guaranteed by the operator if desired, for example through fixed-interest bearing deposits with secure financial institutions, or otherwise hedged against loss. This feature is a particularly advantageous and attractive outcome from the players' perspective by contrast with traditional para-mutual type gaming systems, in which the prize pool available for distribution to players collectively is inherently of lesser value than the total amount received from the players collectively as bets.

A more specific implementation of the embodiment of the invention represented in figure 1 is illustrated in figure 2, wherein corresponding features are denoted by corresponding reference numerals. In this example, the system is implemented to allow sport-based betting-and entries 2 take the form of bets placed in respect of sporting events. To commence, a player 3 selects and places a bet using a terminal 20. Each bet is typically indicative of the following components.

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A sporting fixture, such as a game of football between Team A and Team B on a set date.

A win-condition for that sporting fixture. For example, "Team A beats Team or "Player X of Team A performs activity A win-condition is typically accompanied by odds which define the potential benefit for a player should that win-condition be realised in practice. A bet is "won" if the win condition is realised, or "lost" if the win condition is not realised.

A monetary component. This is paid in cash (physically or electronically) by Oeach player when placing a bet, and the monetary component is automatically S 10 transferred into an account maintained for the purposes of operating the gaming system.

To place a bet, the player selects a sporting fixture, win-condition and monetary component, and subsequently completes a cash transaction to finalise the placement of the bet. The player is then provided with a receipt confirming the details of the bet placed. In some implementations, each player uses a terminal 20 provided in a gaming venue, such as a casino, a hotel or the like. Alternatively, computer terminals may be used over a LAN, WAN or the Internet.

The monetary components of all bets placed in respect of a particular fixture or gaming activity are combined to form a pool of investment capital 5 for that fixture.

The capital pool 5 holds these funds in a notional sense only, since typically upon each bet being placed, the corresponding investment capital portion is invested substantially immediately. By this means, the predetermined investment period is defined by a set endpoint and the investment capital pool is continually added to as bets are progressively placed up until a bet-placement deadline, such as the start of the relevant sporting event.

At the end of the predetermined investment period, the total available funds are withdrawn from the investment vehicle 8. Assuming the investment did not result in a loss (an assumption generally applied throughout this disclosure on the basis previously indicated) the funds withdrawn are defined by a combination of the investment capital 6 of the capital pool 5 and the investment income 9.

The system administrator uses investment as a primary, and ideally as a sole, form of revenue generation, rather than gaming per se. To this end, the administrator's -18fees and commissions 10 are deducted from the investment income 9, as are the ,investment costs 11. Typically, the administrator's commission is a predetermined percentage of the investment income, although in other embodiments, a flat-rate-per- N entry calculation or some other charging regime, may be applied. What remains following the withdrawal of the cost components 10 and 1 I defines the prize portion 12 of the investment income, which is added to the prize pool 13, together with the investment capital 6 (and any non-investmenfit capital 7 if relevant) for distribution as prize money.

Once the outcome of the relevant event or fixture is known, the system is responsive to the outcome, the respective win-conditions of the bets placed, and the total value of funds in the final prize pool 13, to determine how those funds should be distributed amongst the players, in accordance with the predetermined distribution protocol defined in respect of that gaming activity. Each player then either receives a winning amount, or a losing amount. The losing amount might be zero.

Finally, following completion of the event, or at a later date as predetermined by the operator, each player presents a bet receipt in an electronic or other form as appropriate to a terminal 20, to redeem any funds that may have been won.

Figure 3 illustrates a further embodiment of the invention, where again corresponding features are denoted by corresponding reference numerals. In this variation, each player is provided with the option of either a guaranteed return or an increased win probability.

Where the former option is selected, a guaranteed return entry 21 is submitted and the corresponding monetary value is placed in a capital pool 5. The size of the capital pool is then increased over time through investment, in the manner previously described in relation to figures 1 and 2. When the result of the game, event or fixture is determined, in the event of a non-winning outcome for a particular player, a losing amount 23 is received. The losing amount preferably corresponds to the monetary value of the bet initially placed, but may alternatively have some other predetermined relative or absolute value.

In some embodiments of the invention the losing amount 23 received by the holder of a guaranteed return entry 21 is equal to the initial purchase cost of the entry.

-19- Hence, in such embodiments it is possible for a player to purchase an entry without being subject to the risk of ultimately losing the initial purchase cost.

If a player alternatively prefers to participate in the game on the basis of an increased win probability, a non-guaranteed return entry 25 is submitted. The corresponding monetary value is again placed in a capital pool 5 but in this case, at least a proportion of the non-guaranteed capital pool is used to meet the interest cost on additional funds borrowed by the operator or administrator of the game. The borrowed funds are significantly larger in magnitude than the value of the initial entry or bet, which is possible because the monetary value of the initial bet is merely required to fund the interest cost on the borrowings, over a relatively short period of time, which allows a significant "gearing ratio". Any residual portion of the non-guaranteed capital pool not used to fund interest on additional borrowings is preferably invested, to generate additional prize money.

The borrowed funds are then used to provide a significant number of bonus entries 26 into the game, which are submitted automatically by the gaming operator on behalf of that player. The number and magnitude of such bonus entries are preferably advised to the player when the initial entry is submitted, although subsequent notification protocols are also envisaged.

When the result of the game is determined, in the case of a non-winning outcome in respect of a non-guaranteed return entry, the player receives nothing. In the event of a winning outcome, the player receives prize money in accordance with the predetermined distribution protocol. However, by virtue of the bonus entries, both the probability of a winning outcome and, potentially, the magnitude of the winnings are significantly enhanced, in comparison with a guaranteed return entry of corresponding monetary value.

Variations of this embodiment are also envisaged, where a proportion of the monetary value of an entry may be designated with a guaranteed refund status, and a complementary or residual proportion of the same entry may be designated to be at risk, in return for bonus entries and a higher relative probability of a winning outcome.

Figure 4 illustrates another embodiment of the invention, which provides the option of placing a recurring bet in relation to a recurring gaming activity, such as a lottery. Referring to the drawing, where corresponding features are again denoted by 20 corresponding reference numerals, each player initially submits a recurring entry with a corresponding monetary value. The monetary amounts from multiple bets are then combined to form a capital pool. From the pool, an investment capital portion, which may comprise the entirety of the capital pool, is invested to generate investment income net of commissions, fees and charges, in essentially the same manner as previously described.

Once the outcome of the gaming event has been determined, and any subsequent time period has elapsed as predetermined by the operator, the investment capital and net investment income are withdrawn and if relevant, combined with any non-investment capital from the initial capital pool, to create an expanded prize pool.

If a player's entry corresponds to a winning outcome according to the predetermined outcome-based distribution protocol applicable to the gaming activity, the player receives a portion of the prize pool, in accordance with that distribution protocol. In the event of a non-winning outcome, the player may optionally request a refund of the monetary amount corresponding to the initial entry, or an otherwise predetermined amount, in which case the player receives that amount. However, in the event that the player does not request such a refund, a new entry of the same or an otherwise predetermined monetary value is automatically generated and submitted to the next recurrence of the corresponding gaming activity.

Thus, this embodiment of the invention can be used to provide a perpetual bet option in respect of a recurring gaming activity, whereby the bet is effective for the current gaming activity and for an indefinite number of subsequent gaming activities of corresponding type, unless and until the entrant either elects to redeem the bet at full cost or other predetermined value at any time after the outcome of the first relevant gaming activity, or alternatively, the gaming activity ceases to operate in which case, again, the bet is redeemable at full cost or other predetermined value. In one particular optional variation, the recurring bet ceases to be effective if and when the entrant wins a prize.

In further variations of the perpetual bet model as described, the entrant, or alternatively the operator, may specify that an entry will be valid for a specific number of games, or for a specific time period. For example, the player, or alternatively the operator, might specify that a particular entry, or type of entry, is valid for 52 -21 consecutive weekly games, and so would be effectively valid for a 12-month period, unless redeemed in the interim.

Figure 5 provides a schematic representation of computer systems involved in a further embodiment of the invention. It will be appreciated that this embodiment is generally applicable to various gaming and other applications either individually or in combination.

A gaming system 81 is described with reference to a plurality of discrete processors. These processors are functionally described, and are in practice typically embodied in one or more central servers or networked computer systems.

An entry management processor 82 receives data indicative of entries from a plurality of remote terminals 83. Players use these terminals 83 to place entries. For example, gaming entrants place bets, and investment entrants place deposits. The terminals 83 are typically geographically separated and defined by the likes of selfserve consoles, operator consoles, phone-based interaction management systems, applications running on personal computers, and so on. The consoles provide data to the entry management processor 82 by a remote link such as a LAN, wireless LAN, WAN, cellular network, RF link, internet connection, satellite link or similar. Often a combination of these communication means is used. The entry management processor 82 receives the entries and updates a database with data indicative of the entries, and also arranges for the monetary components of each entry to be transferred to a pool management processor 84.

The pool management processor 84 is responsible for receiving and verifying funds, and subsequently making high-level investment decisions. These decisions typically relate to quantum of capital to be invested, and investment terms. Data indicative of the decision made is passed to an investment order processor 85, which provides an investment order to a financial services system 86. This data is typically provided in a format electronically recognisable to the financial services system 86 and indicative of high-level investment instructions such as investment category, quantum and term. In some embodiments an administrator of the gaming system 81 liases with an administrator of the financial services system 86 to establish a plurality of investment types of varying risk levels and return prospects, and the investment order processor 85 identifies one or more of these investment types when providing an order.

-22 The investment order processor 85 is also responsible for electronically transferring investment funds to the financial services system 86.

The financial services system includes a customer interface processor 87 for interacting with the gaming system 81. This processor receives from the order processor 85 investment orders and investment funds, and passes these to an investment management server 88. That server is responsible for undertaking the actual investment activity using one or more of a plurality of available investment sources 89. Upon the completion of investment, the customer interface server 87 returns the invested funds and investment income to an investment receipt processor 90 in system 81. These funds are analysed and broken up into components by an income management processor 91. This includes the separation of administrator commissions and other costs from the investment income that was generated.

Once the outcome of an event is known, an outcome analysis processor 92 determines one or more winners from the initial entrants. Data indicative of these winners, along with the amounts won, is passed to a distribution management processor 93. That processor is responsible for administering the distribution of winnings to the entrants, typically via real-time communications with the terminals 83.

In some embodiments, for a given entry, a player is provided with an opportunity to select between a plurality of unique risk profiles. The selected risk profile affects one or more characteristics of a prize winnable on the basis of that entry, thereby allowing for player control over aspects of risk and return. For example, in some embodiments, the one or more characteristics include the value of the prize, and a player is provided with the opportunity to take greater risk for the opportunity to win a more valuable prize.

Each risk profile defines a proportion of the entry fee that is refundable on the basis of predetermined refund criteria and a complementary proportion of the entry fee that is placed at risk. For example, in one risk profile 100% of the entry fee is refundable (and 0% is placed at risk) and in another risk profile 100% of the entry fee is placed at risk (and 0% is refundable). In some embodiments, there are additional risk profiles where non-zero proportions of the entry fee are both refundable and placed at risk. For example, in one risk profile, 40% of the entry fee is placed at risk, and 60% of the entry fee is refundable.

-23

O

The manner by which a player selects between risk profiles varies between embodiments. For example, in various embodiments: An administrator defines a selection of available risk profiles, and players selects between those profiles. For example, profiles may be defined at 10% increments (100% refundable and 0% at risk, 90% refundable and 10% at risk, refundable and 20% at risk, and so on).

Players are permitted to specify preferred at risk (and hence refundable) proportions and in doing so create player-defined risk profiles. For example, a player selects a risk profile by specifying a proportion of the entry fee, between IN 10 0% and 100% inclusive, that is to be placed at risk.

S Players purchase specific types of entries having inherently associated risk profiles. For example, an "at risk" type entry is an entry where 100% of the entry fee is placed at risk, and a "refundable" type entry is an entry where 100% of the entry fee is refundable in the case of a non-win event.

The prize characteristics affected by risk profile selection vary between embodiments. For example, in some embodiments the characteristics include prize value. In one such embodiment the value of the prize winnable increases in relation to the proportion of the entry fee placed at risk. That is, if a first player places X% at risk and a second player places Y% at risk, and Y X, the second player has an opportunity to win a more valuable prize than the first player. However, it should be appreciated that the affected prize characteristics are not limited to value, and may relate to other aspects of the prize's nature in a broader context.

Figure 6 illustrates an embodiment of the invention, in the form of a system 48, where players are provided with options for risk and return. In particular, players are provided with the opportunity to select between two different risk profiles, and by this selection correspondingly play for two different categories of prize. The categories of prize are, for the sake of convenient explanation, described in terms of "major prizes" and "minor prizes". As will be appreciated from the discussion below, the intention is for major prizes to generally be of greater value than minor prizes. However, in some alternate embodiments this is not the case. In some embodiments the major prize includes, as a component, the minor prize.

In overview, each player selects between: 24 A risk profile where 100% of the entry fee is refundable in the case of a nonwin event. Such participation provides one or more chances to win a minor prize. In particular, one or more refundable-type entries in a minor prize draw are awarded to the player, the number of entries being based on the quantum of the refundable entry fee. The chances of a player winning a minor prize corresponds to the number of entries that player holds in the minor prize draw.

A risk profile where 100% of the entry fee is placed at risk. Such participation provides one or more chances to win a major prize. In particular, one or more at-risk-type entries in a major prize draw are awarded to the player, the number of entries being based on the quantum of the entry fee placed at risk. The chances of a player winning a major prize corresponds to the number of entries that player holds in the minor prize draw.

The general notion is that, by placing all or part of his/her entry fee as risk, a player makes a greater contribution to the overall prize pool. For making such a greater contribution, the player is rewarded with an opportunity to win a different, and in this case a larger, prize.

The present embodiment also allows for a hybrid entry. A hybrid entry is an entry where a predetermined proportion of the corresponding entry fee is refundable, and a residual proportion of the entry fee is placed at risk. The chances of winning a minor prize are based on the proportion of the entry fee that is refundable, and the chances of winning a major prize are based on the proportion of the entry fee at risk.

In the illustrated example, the whole capital pool 5 designated as investment capital 6, and is invested through an investment vehicle 8 for a period of time to generate investment income 9. A portion 12.of this investment income is added to a distribution pool 49, along with the investment capital 6.

The distribution pool 49 is used to fund major prizes, minor prizes, and refunds, and as such effectively includes a refund pool 50 (for refunding entry fees where appropriate) and a prize pool, the prize pool being defined by a capital prize portion 51 and investment prize portion 12. The capital and investment prize portions 51 and 12 together fund the major and minor prizes.

The proportions of the prize pool used to fund major and minor prizes varies between embodiments, and are preferably selected such that a predefined value 25 proportionality relationship exists between the value of major and minor prizes. As schematically illustrated in Figure 6, the major and minor prizes are each funded by a proportion of the capital prize portion 51 and a proportion the investment prize portion 12. The proportions need not be the same, and appropriate proportions are preferably selected to provide a desired value relationship between major and minor prizes. In the example of figure 6A, the minor prizes are funded solely by a proportion of the investment prize portion 12.

Although in Figures 6 and 6A the capital pool from entry fees is invested in its entirety as investment capital, in some embodiments the capital pool is designated to include a non-investment portion.

Figure 7 schematically illustrates an exemplary method for conducting gaming in the context of the system of figure 6 or figure 6A. In overview, a player provides an entry fee in consideration for one or more entries in a gaming activity, and designates at-risk and refundable portions of that entry fee. For example, the player purchases a selected number or value of refundable type entries, and/or a selected number of atrisk-type entries. Once the outcome of the gaming activity is known, major prizes, minor prizes, and refunds are distributed in accordance with prize and refund distribution protocols.

As illustrated, figure 7 implies that the gaming activity includes a first subactivity for determining winning outcomes in relation to minor prizes, and a second sub-activity for determining winning outcomes in relation major prizes. However, in some embodiments these sub-activities are in fact the same activity.

The embodiments of figures 6, 6A and 7 essentially provide a player with an option to manage aspects of risk and return. That is, by taking on a greater risk, the player is able to seek a greater return. However, a risk averse player is able to participate nevertheless.

Some numerical examples based on the embodiments of figures 6, 6A and 7 will now be considered. These are provided for the sake of convenient explanation only, and should not be regarded as limiting in any way.

In one example, there are two risk profiles, these respectively allowing for refundable-type entries (100% refundable) and at-risk-type entries (100% at risk).

These entries are offered for sale at a price of $1 each. There is one major prize, and -26one minor prize. Moreover, the values of the minor and major prizes are directly related to the contributions made to the prize pool by the sale of refundable-type entries and at-risk-type entries respectively. The investment strategy is assumed to provide a 10% return, and 10% of this return is attributable to investment costs and administration fees.

In relation to a given event, 50,000 of each type of entry are sold, resulting in investment capital of $100,000. This is invested to produce an investment return of $10,000, of which $9,000 is provided to the distribution pool ($1,000 is attributed to investment costs and administration fees). The total distribution pool is therefore $109,000. Of this, $50,000 is to be refunded in relation to refundable-type entries, and is therefore attributable to the refund pool. The remaining $59,000 is attributable to the prize pool. It will be appreciated that, of this prize pool, the contribution from refundable-type entries totals $4,500 (half of the investment-based prize portion), and the contribution from at-risk-type entries totals $54,500 (half of the investment-based prize portion plus the at-risk entry fees). It follows that each refundable type entry has a 1/50,000 probability of winning $4,500, and each at-risk-type entry has a 1/50,000 probability of winning $54,500.

In another example, refundable-type entries and at-risk-type entries are again offered for sale at a price of $1 each. Again, there is one major prize and one minor prize, and the investment strategy is assumed to provide a 10% return, of which 90% is added to the distribution pool and 10% is attributable to investment costs and administration fees. However, in this example, the minor and major prize are not related to relative contributions, and rather are defined as follows: S The minor prize has a value equal to half of the investment income added to the distribution pool. That is, the minor prize equates to 45% of the investment income.

S The major prize has a value equal to half of the investment income added to the distribution pool, plus the value of the at-risk entry fees.

In relation to a given event, 90,000 refundable-type entries are sold, and 10,000 at-risk-type entries are sold, resulting in investment capital of $100,000. This is invested to produce an investment return of $10,000, of which $9,000 is provided to the distribution pool. The total distribution pool is therefore S 109,000, of which -27- $50,000 is attributable to the refund pool, and $59,000 attributable to the prize pool. It follows that each refundable type entry has a 1/90,000 probability of winning the minor prize and each at-risk-type entry has a 1/10,000 probability of winning the major prize ($54,500).

In another example, refundable-type entries and at-risk-type entries are again offered for sale at a price of$1 each. Again, there is one major prize and one minor prize, and the investment strategy is assumed to provide a 10% return, of which 90% is added to the distribution pool and 10% is attributable to investment costs and administration fees. In this example, the minor and major prizes are defined as follows: The minor prize has a value equal to 25% of prize pool.

The major prize has a value equal to 75% of prize pool.

In relation to a given event, 90,000 refundable-type entries are sold, and 10,000 at-risk-type entries are sold, resulting in investment capital of $100,000. This is invested to produce an investment return of $10,000, of which $9,000 is provided to the distribution pool. The total distribution pool is therefore $109,000, of which $50,000 is attributable to the refund pool, and $59,000 attributable to the prize pool. It follows that each refundable type entry has a 1/90,000 probability of winning the minor prize ($14,750), and each at-risk-type entry has a 1/10,000 probability of winning the major prize ($44,250).

In another embodiment the minor prize has a value equal to 10% of prize pool, and the major prize has a value equal to 90% of prize pool. Other percentages are used on further embodiments, with the general objective being to provide players with appropriate incentive. It will be appreciated that this, to some extent, is a marketing exercise.

Although the above examples deal with a single major prize and a single minor prize, in other embodiments there are a numerous tiered major prizes and/or minor prizes. For example, one embodiment provides a tiered first, second and third major prize, and a tiered first, second and third minor prize. Although the intention is for major prizes to generally be of greater value than minor prizes, in embodiments where there are multiple value-tiered major and minor prizes, it is not a necessity that every major prize is greater in value than every minor prize.

28 In some embodiments, the maximum value of prize that may be won is directly related to the proportion of an entry fee that is placed at risk. One such embodiment is shown in figure 8, and discussed below. In this embodiment, entries are offered for sale at a set per-unit entry fee, and a player designates a proportion of this entry fee that is to be placed at risk, between 0% (no risk, full guaranteed refund in the case of a non-win event) and 100% (full risk, no guaranteed refund in the case of a non-win event). The prize pool is notionally structured to include a standard prize pool and a bonus prize pool. Upon completion of the gaming activity, a single winning entry is identified. The player responsible for the winning entry is awarded the whole of the standard prize pool, plus a proportion of the bonus prize pool corresponding to the proportion of the entry fee placed at risk. For example, in the event that a player that places half of his/her entry fee at risk and ultimately wins, that player is awarded the whole standard prize pool, plus half of the bonus prize pool. In this case, each entry has the same chance of winning a prize regardless of the risk profile adopted, and only the value of that prize changes. That is, an entry placed on the basis of a 100% refundable risk profile has the same chance of winning a prize as an entry place on the basis of a 0% refundable risk profile, or any other profile for that matter.

It will be appreciated that, unless the winning entry was placed subject to 100% risk of the entry fee, there will be a residual amount in the bonus prize pool following the distribution of the prize. Preferably, this residual amount is distributed among the players in accordance with their contribution to the bonus prize pool. It follows that each entry is refunded by: The refundable portion of the entry fee.

A proportion of the at-risk portion of the entry fee. This proportion is the inverse of the proportion of entry fee placed at risk in respect of the winning entry. That is, if the winning entry was placed subject to 0% risk, the at-risk portions of all entry fees are fully refunded. On the other hand, if the winning entry was placed subject to 100% risk, there will be no refund of at-risk portions of any entry fees. In the event that the winning entry was placed subject to 60% risk, there will a 40% refund of at-risk portions of the entry fees, and so on.

-29- A numerical example of such an embodiment will now be considered. In this example, entries are offered for sale at an entry fee of $100 each. The standard prize pool is to have a value equal to the prize portion of investment income, and the bonus prize pool is to have a value equal to non-refundable portions of all entry fees.

Furthermore, any residual portion of the bonus prize pool is to be distributed among the players in accordance with their contribution to the bonus prize pool. The investment strategy is assumed to provide a 10% return, of which 90% defines the standard prize pool and 10% is attributable to investment costs and administration fees.

In relation to a given event, 1,000 entries are sold, resulting in investment capital of $100,000. $10,000 of investment income is generated, resulting in a standard prize pool of $9,000. For the sake of example, the entries are placed in accordance with the following risk profiles: 500 entries are sold on the basis of 0% at-risk (100% refundable). These make no contribution to the bonus prize pool.

a 200 entries are sold on the basis of 10% at-risk (90% refundable). These make a $2,000 contribution to the bonus prize pool.

200 entries are sold on the basis of 50% at-risk (50% refundable). These make a $10,000 contribution to the bonus prize pool.

0 50 entries are sold on the basis of 80% at-risk (20% refundable). These make a $4,000 contribution to the bonus prize pool.

50 entries are sold on the basis of 100% at-risk refundable). These make a $5,000 contribution to the bonus prize pool.

The bonus prize pool therefore totals $21,000.

For the sake of example, assume that the winning entry was placed on the basis of 10% at-risk (90% refundable). The player therefore wins the $9,000 standard prize pool, plus 10% of the bonus prize pool $2,100. The total prize therefore amounts to $11,100.

In this example, there is a residual $18,900 in the bonus prize pool, and this is distributed as refunds among the entries in accordance with the relative contributions of those entries. It will be appreciated that the prize took 10% of the bonus prize pool, and as such 90% of the at-risk portions of the entry fees are refunded. Specifically: $9 is refunded for each entry sold on the basis of 10% at-risk (90% refundable).

$45 is refunded for each entry sold on the basis of 50% at-risk refundable).

$72 is refunded for each entry sold on the basis of 80% at-risk refundable).

$90 is refunded for each entry sold on the basis of 100% at-risk (0% refundable).

It will be appreciated that, by this approach, players may receive a refund for monies placed at risk. The probability of receiving a refund, and the level of refund, depend on risk selections made by players across the game.

Although in the above embodiment a residual amount in the bonus prize pool is refunded to the players, in other embodiments this residual amount rolls over as a jackpot, is taken by the gaming administrator, or is distributed to one or more of the players as one or more supplementary prizes.

Other techniques for apportionment of the prize pool between a standard and bonus prize pool are used in further embodiments. For example, in one embodiment the standard prize pool and bonus prize pool are maintained in a predefined ratio.

Traditional gaming activities necessarily involve the customer or player putting their money at risk of loss. The present invention, at least in some of its preferred forms, modifies the traditional ways of operating such activities to give players the option of risk-free participation while retaining the opportunity to win prizes, potentially alongside more risky though still modified participation by other players.

Traditional gaming activities, by definition, involve putting money or valuables at risk, and to that extent the present invention, at least in some preferred embodiments, does not resemble the operation of traditional gaming activities. Rather, it modifies traditional gaming and even investing operations and consequently is able to present the customers or players with new products of a risk-free nature, or with altered risk/return characteristics, to produce new outcomes that have not hitherto been available. In these and many other respects, .the invention represents a practical and commercially significant improvement over the prior art.

It will be understood that the steps of methods discussed are performed in one embodiment by an appropriate processor (or processors) of a processing computer) system executing instructions (computer-readable code) stored in storage.

-31 The term "processor" may refer to any device or portion of a device that processes electronic data, from registers and/or memory to transform that electronic data into other electronic data that, may be stored in registers and/or memory. A "computer" or a "computing machine" or a "computing platform" may include one or more processors.

In some embodiments, one or more processors operate as a standalone device or may be connected, networked to other processor(s), in a networked deployment, the one or more processors may operate in the capacity of a server or a user machine in server-user network environment, or as a peer machine in a peer-topeer or distributed network environment.

At least one embodiment of each of the methods described herein is in the form of a computer-readable carrier medium carrying a set of instructions, a computer program that are for execution on one or more processors, one or more processors that are part of building management system. Thus, as will be appreciated by those skilled in the art, embodiments of the present invention may be embodied as a method, an apparatus such as a special purpose apparatus, an apparatus such as a data processing system, or a computer-readable carrier medium, a computer program product. The computer-readable carrier medium carries computer readable code including a set of instructions that when executed on one or more processors cause the a processor or processors to implement a method. Accordingly, aspects of the present invention may take the form of a method, an entirely hardware embodiment, an entirely software embodiment or an embodiment combining software and hardware aspects. Furthermore, the present invention may take the form of carrier medium a computer program product on a computer-readable storage medium) carrying computer-readable program code embodied in the medium.

As used herein, unless otherwise specified the use of the ordinal adjectives "first", "second", "third", etc., to describe a common object, merely indicate that different instances of like objects are being referred to, and are not intended to imply that the objects so described must be in a given sequence, either temporally, spatially, in ranking, or in any other manner.

-32- Although the invention has been described with reference to specific examples, it will be appreciated by those skilled in the art that the invention may be embodied in many other forms.

Claims (5)

1. A system for conducting gaming, the system including: a first interface for receiving data indicative of entries and corresponding entry fees from multiple entrants in relation to a gaming activity having an unknown outcome, wherein at least one entrant placing an entry is provided with an opportunity to select between a plurality of unique risk profiles, wherein each risk profile defines a proportion of the entry fee that is refundable on the basis of predetermined refund criteria and a complementary proportion of the entry fee that is placed at risk, and wherein the selected risk profile affects one or more characteristics of a prize winnable on the basis of that entry; a first processor for determining one or more winning outcomes of the gaming activity; a second processor that is responsive to the first interface and the first processor for determining how to distribute prizes between one or more winning entrants corresponding to said winning outcomes, in accordance with a predetermined outcome-based distribution protocol; a third processor that is responsive to the first interface and the first processor for determining how to distribute refunds to one or more eligible entrants on the basis of the predetermined refund criteria; and a second interface that is responsive to the third processor and the fourth processor for providing a signal indicative of instructions for distributing the prizes and the refunds.

2. A system according to claim 1 wherein the plurality of risk profiles includes a first risk profile for which 100% of the entry fee is refundable and a second risk profile for which 100% of the entry fee is placed at risk.

3. A system according to claim 1 or claim 2 wherein the plurality of risk profiles includes at least one risk profile for which X% of the entry fee is refundable and Y% of the entry fee is placed at risk, wherein X Y 100 and wherein 0 X 100. -34-

4. A system according to any one of the preceding claims wherein the one or more characteristics include the value of the prize, and wherein an entry for which a non- Szero proportion of the entry fee is placed at risk has an opportunity to win a more Svaluable prize than an entry for which none of the entry fee is placed at risk.

5. A system according to any one of the preceding claims wherein: _the entry fees are combined into an entry fee pool; at least a proportion of the entry fee pool is invested for a period of time to generate an investment return; and a total value in prizes and refunds is designated for return to the entrants collectively, this total value being net of any operator contributions, that is at least equal in value to the entry fee pool net of any applicable taxes or duties, by combining at least a proportion of the entry fee pool with at least a proportion of the investment return.