WO2010033124A1

WO2010033124A1 - Volume pricing and retailer incentives in a lottery game

Info

Publication number: WO2010033124A1
Application number: PCT/US2008/077134
Authority: WO
Inventors: Michael D. Frick
Original assignee: Integrated Group Assets Inc.
Priority date: 2008-09-19
Filing date: 2008-09-19
Publication date: 2010-03-25
Also published as: US20100075731A1

Abstract

A process establishes a gross wholesale value for a predetermined quantity of instant lottery game tickets. Further, the process establishes a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the wholesale value for the predetermined quantity of instant lottery game tickets. A ratio of a sub-target lot size to a sub-target price is in a non-linear proportion with a ratio of a target lot size to a target price. The process also receives, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer.

Description

VOLUME PRICING AND RETAILER INCENTIVES IN A LOTTERY

GAME

BY

MICHAEL D. FRICK

BACKGROUND [0001] 1. Field

[0002]This disclosure generally relates to the field of gaming. More particularly, the disclosure relates to a lottery game. [0003] 2. General Background

[0004]A lottery is generally a distribution of tokens such that a subset of the distributed tokens may win a prize. The token can be in the form of a ticket. One of the most popular forms of lottery involves the distribution of lottery tickets. Each lottery ticket includes a lottery number. After the lottery tickets have been distributed to the lottery ticket holders, the winning number is chosen. The usual method of selecting the winning number involves a random selection of the winning number. A random number generator can be used to randomly select the winning number. Some lottery systems require the ticket to have the entire number that is randomly selected while other lottery systems require the ticket to have a subset of an ordered sequence of numbers that are randomly selected.

[0005] Traditional instant games, such as peel-off or scratch -off-style games, involve pre-determined results reflected by pre-printed tickets. A peel-off game may be implemented as a pull-tab game. Generally, the results are concealed and the player must scratch off material or pull tabs to reveal the results of the instant game. A traditional instant game is generally offered at a single price, with each game having its own price and independent fixed prize structure. Players seeking higher prizes must choose a different game; typically, a single game does not provide the player with prize and price options. [0006] Over the past 15 years, many lotteries have experienced an erosion of net profit margins primarily as the result of sales shifts from higher margin product segments like numbers and lotto games to lower margin product segments like instant games. In 1992, for example, higher margin games made up approximately two thirds of total U.S. lottery sales and instant games represented less than a third of total U.S. lottery sales. By 2007, traditional higher margin games represented slightly more than one third of total U.S. lottery sales while instant sales had grown to over one half of total U.S. lottery sales. Typical instant games currently carry prize costs that are approximately thirty percent greater than corresponding traditional numbers, lotto and raffle games.

[0007] The result of this shift in sales to lower margin products has allowed sales to grow, but at the expense of net profit margins. Since 2005, several lotteries have suffered year-over-year declines in net profits despite having achieved record or near-record annual sales levels.

SUMMARY

[0008] In one aspect of the disclosure, a process is provided. The process establishes a gross wholesale value for a predetermined quantity of instant lottery game tickets. Further, the process establishes a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets. In addition, the process indicates a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of target lots is a subset of the predetermined quantity of instant lottery game tickets and has a target lot size. Further, the process indicates a sub- target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and has a sub-target lot size. A ratio of the sub-target lot size to the sub-target price is in a non-linear proportion with a ratio of the target lot size to the target price. The process also provides the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game. Further, the process receives, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer. Finally, the process provides a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match.

[0009] In yet another aspect of the disclosure, a process is provided. The process establishes a gross wholesale value for a predetermined quantity of instant lottery game tickets. Further, the process establishes a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets. In addition, the process indicates a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and has a target lot size. The process also indicates a sub- target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of sub-target lots is a subset of the predetermined quantity of instant lottery game tickets and has a sub-target lot size. A ratio of the sub-target lot size to the sub-target price is in a non-linear proportion with a ratio of the target lot size to the target price. Further, the process also indicates an additional sub-target price for each of a plurality of additional sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of additional sub- target lots being a subset of the predetermined quantity of instant lottery game tickets and has an additional sub-target lot size. A ratio of the additional sub- target lot size to the additional sub-target price is in a linear proportion with a ratio of the sub-target lot size to the sub-target price. In addition, the process provides the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game. The process also receives, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer. Finally, the process provides a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match.

[001O] In another aspect of the disclosure, a system is provided. The system includes an establishment module that establishes a gross wholesale value for a predetermined quantity of instant lottery game ticket and a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets. Further, the system includes a display module that indicates a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players and a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of target lots is a subset of the predetermined quantity of instant lottery game tickets and has a target lot size. Each of the plurality of sub-target lots is a subset of the predetermined quantity of instant lottery game tickets and has a sub-target lot size. A ratio of the sub-target lot size to the sub-target price is in a non-linear proportion with a ratio of the target lot size to the target price. In addition, the system includes a ticket distribution module that provides the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game. The system also includes a reception module that receives, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer. Finally, the system includes a prize distribution module that provides a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match. [0011] In yet another aspect of the disclosure, a system is provided. The system includes an establishment module that establishes a gross wholesale value for a predetermined quantity of instant lottery game ticket and a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets. Further, the system includes a display module that indicates a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, and an additional sub-target price for each of a plurality of additional sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, Each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and has a target lot size. Each of the plurality of sub- target lots is a subset of the predetermined quantity of instant lottery game tickets and has a sub-target lot size. A ratio of the sub-target lot size to the sub- target price is in a non-linear proportion with a ratio of the target lot size to the target price. Each of the plurality of additional sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and has an additional sub-target lot size. A ratio of the additional sub-target lot size to the additional sub-target price is in a linear proportion with a ratio of the sub-target lot size to the sub-target price. In addition, the system includes a ticket distribution module that provides the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game. The system also includes a reception module that receives, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer. Further, the system includes a prize distribution module that provides a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match. [0012] In another aspect of the disclosure, a computer program product is provided. The computer program product includes a computer useable medium having a computer readable program. The computer readable program when executed on a computer causes the computer to establish a gross wholesale value for a predetermined quantity of instant lottery game tickets. Further, the computer readable program when executed on a computer causes the computer to establish a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets. In addition, the computer readable program when executed on a computer causes the computer to indicate a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of target lots is a subset of the predetermined quantity of instant lottery game tickets and has a target lot size. The computer readable program when executed on a computer also causes the computer to indicate a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of sub-target lots is a subset of the predetermined quantity of instant lottery game tickets and has a sub-target lot size. A ratio of the sub-target lot size to the sub-target price is in a non-linear proportion with a ratio of the target lot size to the target price. Further, the computer readable program when executed on a computer causes the computer to provide the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game. In addition, the computer readable program when executed on a computer causes the computer to receive, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer. Finally, the computer readable program when executed on a computer causes the computer to provide a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match. [0013] In yet another aspect of the disclosure, a computer program product is provided. The computer program product includes a computer useable medium having a computer readable program. The computer readable program when executed on a computer causes the computer to establish a gross wholesale value for a predetermined quantity of instant lottery game tickets. Further, the computer readable program when executed on a computer causes the computer to establish a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets. In addition, the computer readable program when executed on a computer causes the computer to indicate a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and has a target lot size. The computer readable program when executed on a computer also causes the computer to indicate a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of sub-target lots is a subset of the predetermined quantity of instant lottery game tickets and has a sub-target lot size. A ratio of the sub-target lot size to the sub-target price is in a non-linear proportion with a ratio of the target lot size to the target price. Further, the computer readable program when executed on a computer causes the computer to indicate an additional sub-target price for each of a plurality of additional sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of additional sub-target lots is a subset of the predetermined quantity of instant lottery game tickets and has an additional sub-target lot size. A ratio of the additional sub-target lot size to the additional sub-target price is in a linear proportion with a ratio of the sub-target lot size to the sub-target price. In addition, the computer readable program when executed on a computer causes the computer to provide the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game. The computer readable program when executed on a computer also causes the computer to receive, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer. Finally, the computer readable program when executed on a computer causes the computer to provide a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match.

BRIEF DESCRIPTION OF THE DRAWINGS

[0014]The above-mentioned features of the present disclosure will become more apparent with reference to the following description taken in conjunction with the accompanying drawings wherein like reference numerals denote like elements and in which:

[0015] Figure 1 illustrates an instant lottery game volume-price discount structure that is offered to players to provide maximum value based upon a target purchase price.

[0016] Figure 2 illustrates a graph of a linear proportion between a ratio of the target lot to target price and sub-target lot to sub-target price.

[0017] Figure 3 illustrates a graph of a non-linear proportion between a ratio of the target lot to target price and sub-target lot to sub-target price of the example illustrated in Figure 1.

[0018] Figure 4 illustrates an instant lottery game volume-price discount structure that has multiple sub-target prices and sub-target lots.

[0019] Figure 5 illustrates a graph of non-linear proportions in the example illustrated in Figure 4. [0020] . Figure 6 illustrates an instant lottery game retailer incentive structure that is implemented for the instant lottery game volume-price discount structure illustrated in Figure 1.

[0021] Figure 7 illustrates an instant lottery game retailer incentive structure that is implemented is implemented for the instant lottery game volume-price discount structure illustrated in Figure 4. [0022] Figure 8 illustrates an alternative instant lottery game retailer incentive structure 800 to the instant lottery game retailer incentive structure illustrated in Figure 6.

[0023] Figure 9 illustrates an alternative instant lottery game retailer incentive structure 900 to the instant lottery game retailer incentive structure illustrated in Figure 7.

[0024] Figure 10 illustrates a payout table based on different prices.

[0025] Figure 11 illustrates a process that may be utilized to provide an instant lottery game retailer incentive structure and an instant lottery game volume-price discount structure.

[0026] Figure 12 illustrates a block diagram of a station or system that provides a volume price discount structure and a retailer incentive structure.

DETAILED DESCRIPTION

[0027]A method and apparatus are disclosed that provide a volume price discount and retailer incentive in a lottery game. In one embodiment, the lottery game is an instant lottery game such a scratch-off lottery game. Further, in one embodiment, the lottery game is a single fixed liability lottery game. In an alternative embodiment, tickets from a plurality of fixed liability lottery games with similar pricing structures may be purchased by a player in a single transaction. The pricing structures do not have to be identical. The method and apparatus offer a strategic supplement to the instant product segment that will allow lotteries to offer instant lottery games at higher price points with significantly more attractive profit margins.

[0028] Figure 1 illustrates an instant lottery game volume-price discount structure 100 that is offered to players to provide maximum value based upon a target purchase price 106. The instant lottery game volume-price discount structure 100 includes a price field 102 and a lot size field 104. The price field

102 indicates a target price 106 and a sub-target price 108. As examples, the target price 106 may be ten dollars and the sub-target price 108 may be five dollars. Further, the lot size field 104 includes a target lot of tickets 110 that can be purchased for the target price 106, and the number of tickets field 104 includes a sub-target lot of tickets 112 that can be purchased for the sub-target price 108. Each lot of tickets is a subset of a predetermined quantity of tickets. For example, a predetermined quantity of one hundred tickets may be sold such that the target lot of tickets 110 may have seven tickets, and the sub-target lot of tickets 112 may have three tickets. A plurality of ten target lots and a plurality of ten sub-target lots may then be sold.

[0029] The sub-target price 108 is a price that is lower than the target price 106. However, instant lottery game players receive greater value from the target price 106 than the sub-target purchase price 108.

[003O]At the target price 106, instant lottery game players receive more chances to win than at the sub-target price 108. Further, in one embodiment, a non-linear proportion is configured between a ratio of the sub-target lot size 112 to the sub- target price 108 and a ratio of the target lot size 110 to the target price 106. The non-linear proportion allows the number of tickets to increase in greater proportion than the increase in purchase price.

[0031] In one embodiment, the same prize distribution is played for irrespective of price point. In other words, whether a player purchases a target lot size of tickets or a sub-target lot size of tickets, the player can still win the same prize. The price point only affects the number of tickets that he player receives, i.e., the chances of winning that prize. In one embodiment, the prize distribution is a fixed prize. In another embodiment, the prize distribution is a variable prize such as a jackpot prize.

[0032] Instant lottery game players deciding to purchase instant lottery game tickets at lower price points will do so with an awareness that they are not receiving the same value as players who purchase instant lottery game tickets at the target purchase price, but simply may not wish to spend the target purchase price. In one embodiment, the instant lottery game players deciding to purchase instant lottery game tickets at lower price points may wish to play at a lower price point for a unique prize such as a non-cash prize that is being offered as a prize distribution at the lower price point. [0033] Figure 2 illustrates a graph 200 of a linear proportion between a ratio of the target lot 110 to target price 106 and the sub-target lot 112 to the sub-target price 108. As an example, a point 208 indicates a target price 106 of ten dollars for a target lot 110 of six tickets and a point 210 indicates a sub-target price 108 of five dollars for a sub-target lot 112 of three tickets. The ratio of the sub-target lot 112 of three tickets to the sub-target price 108 of five dollars is three to five. Accordingly, a line 204 is drawn with a slope of three fifths. Similarly, the ratio of the target lot 110 of six tickets to the target price 106 of ten dollars is three to five. Accordingly, a line 206 is drawn with a slope of three fifths. The lines 204 and 206 form one continuous line as the proportion of these two ratios is linear. A player can pay ten dollars for one lot of six tickets or could pay ten dollars for two lots of three tickets. The linear proportion does not incentivize purchase of a higher priced lot.

[0034] Figure 3 illustrates a graph 300 of a non-linear proportion between a ratio of the target lot 110 to target price 106 and sub-target lot 112 to sub-target price 108 of the example illustrated in Figure 1. As an example, a point 308 indicates a target price 106 of ten dollars for a target lot 110 of seven tickets and a point 310 indicates a sub-target price 108 of five dollars for a sub-target lot 112 of three tickets. The ratio of the sub-target lot 112 of three tickets to the sub-target price 108 of five dollars is three to five. Accordingly, a line 304 is drawn with a slope of three fifths. However, the ratio of the target lot 110 of seven tickets to the target price 106 of ten dollars is seven to ten. Accordingly, a line 206 is drawn with a slope of seven tenths. The line 304 and the line 306 do not form one continuous line as the line 304 and the line 306 have different slopes because the proportion of these two ratios is non-linear. The non-linear proportion incentivizes an instant lottery game player to purchase the higher priced lot. For example, the instant lottery game player will have better odds of winning a prize by purchasing a single ten dollar lot to obtain seven chances at winning as opposed to purchasing two five dollar lots to obtain only six changes at winning.

[0035] Figure 4 illustrates an instant lottery game volume-price discount structure 400 that has multiple sub-target prices and sub-target lots. The instant lottery game volume-price discount structure 100 is no limited to only one sub-target price and sub-target lot. For example, an additional sub-target price field 402 may indicated that two dollars may be utilized to purchase a lot of one ticket, which is indicated in an additional sub-target lot 404. Further, in one embodiment, instant lottery game players receive greater value from a sub-target price that is closer to the target purchase price in value than a sub-target purchase price that is more distant from the target purchase price in value. In other words, instant lottery game players are offered an increasing number of instant lottery game tickets as purchase price increases with the target price having the maximum number of tickets available for purchase in one lot of tickets. For example, if a player purchases five two dollar lots, the player only has five chances at winning as opposed to the seven chances at winning that can be obtained with a purchase of a single ten dollar lot. However, if the player purchases two five dollar lots, the player has six chances of winning, which is less than a purchase of a single ten dollar lot, but more than a purchase of five two dollar lots.

[0036] Figure 5 illustrates a graph 500 of non-linear proportions in the example illustrated in Figure 4. As an example, a point 514 indicates a target price 106 of ten dollars for a target lot 110 of seven tickets, a point 512 indicates a sub-target price 108 of five dollars for a sub-target lot 112 of three tickets, and a point 510 indicates an additional sub-target price 402 of two dollars for a sub-target lot 404 of one ticket. The ratio of the sub-target lot 404 of one ticket to the sub-target price 402 of two dollars is one to two. Accordingly, a line 504 is drawn with a slope of one half. The ratio of the sub-target lot 112 of three tickets to the sub- target price 108 of five dollars is three to five. Accordingly, a line 506 is drawn with a slope of three fifths. The ratio of the target lot 110 of seven tickets to the target price 106 of ten dollars is seven to ten. Accordingly, a line 508 is drawn with a slope of seven tenths. The line 504, the line 506, and the line do not form one continuous line as the line 504, the line 506, and the line 508 have different slopes. The proportion between the ratio of the target lot 110 to the target price 106 and the ratio of the sub-target lot 404 to the sub-target price 402 is a nonlinear proportion. Further, the proportion between the ratio of the target lot 110 to the target price 106 and the ratio of the sub-target lot 112 to the sub-target price 108 is a non-linear proportion. Finally, the proportion between the ratio of the sub-target lot 112 to the sub-target price 108 and the ratio of the sub-target lot 404 to the sub-target price 402 is a non-linear proportion. [0037] In another embodiment, a linear proportion and a non-linear proportion may be utilized. For example, the proportion between the ratio of the sub-target lot 112 to the sub-target price 108 and the ratio of the sub-target lot 404 to the sub-target price 402 may be a linear proportion, the proportion between the ratio of the target lot 110 to the target price 106 and the ratio of the sub-target lot 404 to the sub-target price 402 may be a non-linear proportion, and the proportion between the ratio of the target lot 110 to the target price 106 and the ratio of the sub-target lot 112 to the sub-target price 108 may be a non-linear proportion.

[0038] By utilizing the processes and apparatuses provided herein, a lottery may effectively offer lottery players more ticket units at higher price points without discounting the lottery's products or further reducing the lottery's profit margins. The lottery will actually be able to achieve sales at higher price points at substantially greater gross profit margins.

[0039] In addition to implementing the instant lottery game volume price-discount structure, the lottery may also implement an instant lottery game retailer incentive structure. Figure 6 illustrates an instant lottery game retailer incentive structure 600 that is implemented for the instant lottery game volume-price discount structure 100 illustrated in Figure 1. In one embodiment, a retailer receives a minimum standard retailer commission based upon the possibility of selling all of the predetermined quantity of tickets. For example, the standard retailer commission may be five percent of the gross wholesale value. A predetermined quantity of tickets may be determined by the gross wholesale value divided by the target price 106. For example, the predetermined quantity of tickets may be the gross wholesale value of three hundred dollars divided by the target price 106 of ten dollars, which equals two hundred ten tickets. If the retailer purchases a predetermined quantity of tickets, e.g., two hundred ten tickets, for three hundred dollars, sells a predetermined number of lots at the target price 106, the retailer has to send only a net wholesale value of two hundred eighty five dollars to the lottery for the actual purchase. If consumers also purchase tickets in lower increments, the effective retailer commission potentially increases. The effective retailer commission is the actual lottery tickets sales less the net wholesale value. [004O]A number of lots field 602 may indicate the number of lots for a given price and lot size. For example, a number of target lots 604 may be nine, and a number of sub-target lots 606 may be forty nine. Further, a sales field 608 may indicate the sales for a given price, lot size, and number of lots. For example, the sales of all tickets at the target price 106 is a target sales amount 610 of ninety dollars, and the sales of all tickets at the sub-target price 108 is a sub- target sales amount 612 of two hundred forty five dollars. If all the tickets are sold, the total sales equal three hundred thirty five dollars. Since all the tickets at the target price have been sold, the retailer only has to provide a net wholesale value two hundred eighty five dollars, not three hundred dollars, to the lottery. The retailer then gets to keep fifty dollars as an effective retailer commission. This effective retailer commission is more than three times the typical industry standard commission.

[0041] Figure 7 illustrates an instant lottery game retailer incentive structure 700 that is implemented is implemented for the instant lottery game volume-price discount structure 400 illustrated in Figure 4. Additional sub-target prices and sub-target lots may be utilized. For example, a number of target lots 702 may be eleven, a number of sub-target lots 706 may be thirty, and a number of additional sub-target lots 710 may be forty three. Further, the sales of all tickets at the target price 106 is a target sales amount 704 one hundred ten dollars, the sales of all tickets at the sub-target price 108 is a sub-target sales amount 708 of one hundred fifty dollars, and the sales of all tickets at the additional sub-target price 402 is a sub-target sales amount 712 of eighty six dollars. If all the tickets are sold, the total sales equal three hundred forty six dollars. Since all the tickets at the target price have been sold, the retailer only has to provide a net wholesale value of two hundred eighty five dollars, not three hundred dollars, to the lottery. The retailer then gets to keep sixty one dollars as an effective retailer commission. This effective retailer commission is more than four times the typical industry standard commission.

[0042] Figure 8 illustrates an alternative instant lottery game retailer incentive structure 800 to the instant lottery game retailer incentive structure illustrated in Figure 6. The predetermined quantity of tickets is sold at the gross wholesale value to the retailer without providing a minimum standard retailer commission to the retailer. If all the tickets are sold, the total sales equal three hundred thirty five dollars. Since all the tickets at the target price have been sold, the retailer only has to provide three hundred dollars to the lottery. The retailer then gets to keep thirty five dollars as an effective retailer commission. This effective retailer commission is more than two times the typical industry standard commission. The lottery also increases its net profit by five percent because the lottery is not giving the retailer a minimum standard retailer commission. For example, the lottery does not provide the five percent minimum standard retailer commission of fifteen dollars for each predetermined quantity of three hundred tickets. Accordingly, both the retailer and the lottery may increase their respective profits.

[0043] Figure 9 illustrates an alternative instant lottery game retailer incentive structure 900 to the instant lottery game retailer incentive structure illustrated in Figure 7. The predetermined quantity of tickets is sold at the gross wholesale value to the retailer without providing a minimum standard retailer commission to the retailer. If all the tickets are sold, the total sales equal three hundred forty six dollars. Since all the tickets at the target price have been sold, the retailer only has to transmit three hundred dollars to the lottery. The retailer then gets to keep forty six dollars as an effective retailer commission. This effective retailer commission is more than three times the typical industry standard commission. The retailer could potentially make a maximum commission of one hundred twenty dollars if the retailer sells all the tickets at two dollars each to have total sales of four hundred twenty dollars. This potential maximum retailer commission is eight times greater than the typical industry standard of fifteen dollars, which is five percent, of every three hundred dollar predetermined quantity of tickets. The lottery also increases its net profit by five percent because the lottery is not giving the retailer a minimum standard retailer commission. For example, the lottery does not provide the five percent minimum standard retailer commission of fifteen dollars for each predetermined quantity of three hundred tickets. Accordingly, both the retailer and the lottery may increase their respective profits.

[0044] Figure 10 illustrates a payout table 100 based on different prices. For example, the target lot of seven tickets for ten dollars equals one dollar forty three cents per ticket, has a sixty three percent maximum payout percentage for each ticket, a sixty three percent effective cash return percentage to players, and a net gain of eight and one half cents per each single ten dollar sale. The maximum payout percentage is significantly below the typical industry average payout percentage for the ten dollar price point. An example of the typical industry average payout percentage for the ten dollar price point is seventy one and one half percent. As another example, the sub-target lot of three tickets for five dollars equals one dollar sixty seven cents per ticket, has less than a sixty three percent maximum payout percentage for each ticket. The maximum payout percentage is significantly below the typical industry average payout percentage for the five dollar price point. An example of the typical industry average payout percentage for the five dollar price point is sixty eight percent. As yet another example, the additional sub-target lot of one ticket for two dollars equals two dollars per ticket, has less than a sixty three percent maximum payout percentage for each ticket,. The maximum payout percentage is slightly below the typical industry average payout percentage for the two dollar price point. An example of the typical industry average payout percentage for the two dollar price point is sixty four percent.

[0045] Prize structures may be further enhanced without increasing the lottery's total prize liability via strategic alliances and co-promotions offering the addition of non-cash prizes including, but not limited to goods, services, discount coupons, gift cards, shopping sprees, merchandise points, merchandise redemption programs, gift certificates, and other offerings of a like or similar nature. The effective cash return percentages described above are exclusive of non-cash prizes offered in any given game. However, the additional non-cash prizes may increase the perceived value of a ticket or group of tickets purchased from a non-target price lot. For example, a non-cash prize in addition to the effective cash return percentage may increase the perceived value for players purchasing a sub-target lot. The perceived value may be equal to or greater than typical lottery industry payouts at comparable price points. The additional non-cash prizes may be offered irrespective of which price ticket or group of tickets is purchased. Accordingly, the addition of a non-cash prize may increase the perceived value across price points.

[0046] Figure 11 illustrates a process 1100 that may be utilized to provide an instant lottery game retailer incentive structure and an instant lottery game volume-price discount structure. At a process block 1102, the process 1100 establishes a gross wholesale value for a predetermined quantity of instant lottery game tickets. Further, at a process block 1104, the process 1100 establishes a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets. In addition, at a process block 1106, the process indicates a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of target lots is a subset of the predetermined quantity of instant lottery game tickets and having a target lot size. At a process block 1108, the process also indicates a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players. Each of the plurality of sub-target lots is a subset of the predetermined quantity of instant lottery game tickets and having a sub-target lot size. A ratio of the sub-target lot size to the sub-target price is in a non-linear proportion with a ratio of the target lot size to the target price. Further, a at a process block 1110, the process 1100 provides the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game. In addition, at a process block 1112, the process 1100 receives, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer. At a process block 1114, the process 1100 also provides a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match. [0047] The processes described herein may be implemented in a general, multipurpose or single purpose processor. Such a processor will execute instructions, either at the assembly, compiled or machine-level, to perform the processes. Those instructions can be written by one of ordinary skill in the art following the description of the figures corresponding to the processes and stored or transmitted on a computer readable medium. The instructions may also be created using source code or any other known computer-aided design tool. A computer readable medium may be any medium capable of carrying those instructions and include a CD-ROM, DVD, magnetic or other optical disc, tape, silicon memory (e.g., removable, non-removable, volatile or non-volatile), packetized or non-packetized data through wireline or wireless transmissions locally or remotely through a network.

[0048]A computer is herein intended to include any device that has a general, multi-purpose or single purpose processor as described above. For example, a computer may be a lottery terminal, a kiosk, a vending machine, a set top box ("STB"), cell phone, portable media player, or the like.

[0049] Figure 12 illustrates a block diagram of a station or system 1200 that provides a volume price discount structure and a retailer incentive structure. In one embodiment, the station or system 1200 is implemented utilizing a general purpose computer or any other hardware equivalents. Thus, the station or system 1200 comprises a processor 1210, a memory 1220, e.g., random access memory ("RAM") and/or read only memory (ROM), a volume price discount and retailer incentive module 1240, and various input/output devices 1230, (e.g., audio/video outputs and audio/video inputs, storage devices, including but not limited to, a tape drive, a floppy drive, a hard disk drive or a compact disk drive, a receiver, a transmitter, a speaker, a display, an image capturing sensor, e.g., those used in a digital still camera or digital video camera, a clock, an output port, a user input device (such as a keyboard, a keypad, a mouse, and the like, or a microphone for capturing speech commands)).

[005O] It should be understood that the volume price discount and retailer incentive module 1240 may be implemented as one or more physical devices that are coupled to the processor 410. For example, the probabilities-based raffle prize module 440 may include a plurality of modules. Alternatively, the volume price discount and retailer incentive module 1240 may be represented by one or more software applications (or even a combination of software and hardware, e.g., using application specific integrated circuits (ASIC)), where the software is loaded from a storage medium, (e.g., a magnetic or optical drive, diskette, or non-volatile memory) and operated by the processor in the memory 420 of the computer. As such, the volume price discount and retailer incentive module 1240 (including associated data structures) of the present disclosure may be stored on a computer readable medium, e.g., RAM memory, magnetic or optical drive or diskette and the like.

[0051] In any of the configurations provided herein, the payout for the prize that is utilized for both the target price and the sub-target price may be guaranteed by a third party entity. As a result, a lottery provider may be able to provide a larger lottery prize than might otherwise be the case. Further, any of the configurations provided herein may be utilized as a part of a stand alone lottery game, an addon lottery game, or both. In addition, any of the configurations provided herein may have tickets with a retail bar code to allow retailers to account for the sale of every ticket.

[0052] Although an instant lottery game is utilized as an example, the volume price discount structure and the retailer incentive structure may be utilized with other types of lottery games. For example, the volume price discount structure and the retailer incentive structure may be utilized for a game that has a drawing rather than an instant game with pre-printed tickets.

[0053] It is understood that the processes and systems described herein may also be applied in other types of processes and systems. Those skilled in the art will appreciate that the various adaptations and modifications of the embodiments of the processes and systems described herein may be configured without departing from the scope and spirit of the present processes and systems. Therefore, it is to be understood that, within the scope of the appended claims, the present processes and systems may be practiced other than as specifically described herein.

Claims

I claim:

1. A method comprising: establishing a gross wholesale value for a predetermined quantity of instant lottery game tickets; establishing a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets; indicating a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and having a target lot size; indicating a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and having a sub-target lot size, a ratio of the sub-target lot size to the sub-target price being in a non-linear proportion with a ratio of the target lot size to the target price; providing the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game; receiving, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer; and providing a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match.

2. The method of claim 1 , wherein the non-linear proportion is configured such that the ratio of the target lot size to the target price is greater than the ratio of the sub-target lot size to the sub-target price.

3. The method of claim 1 , wherein the instant lottery game is a scratch-off lottery game.

4. The method of claim 1 , wherein the instant lottery game is a pull- tab lottery game.

5. The method of claim 1 , wherein the instant lottery game is a single fixed liability lottery game.

6. The method of claim 1 , wherein a minimum standard retailer commission is also part of the commission.

7. The method of claim 1 , wherein the commission is offered without a minimum standard retailer commission.

8. The method of claim 1 , wherein the prize distribution is a fixed prize.

9. The method of claim 1 , wherein payout of the prize distribution is guaranteed by a third party entity.

10. A method comprising: establishing a gross wholesale value for a predetermined quantity of instant lottery game tickets; establishing a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets; indicating a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and having a target lot size; indicating a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and having a sub-target lot size, a ratio of the sub-target lot size to the sub-target price being in a non-linear proportion with a ratio of the target lot size to the target price; indicating an additional sub-target price for each of a plurality of additional sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of additional sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and having an additional sub-target lot size, a ratio of the additional sub-target lot size to the additional sub-target price being in a linear proportion with a ratio of the sub-target lot size to the sub-target price; providing the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game; receiving, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer; and providing a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match.

11. The method of claim 10, wherein the non-linear proportion is configured such that the ratio of the target lot size to the target price is greater than the ratio of the sub-target lot size to the sub-target price.

12. The method of claim 10, wherein the linear proportion is configured such that the ratio of the sub-target lot size to the sub-target price is equal to the ratio of the additional sub-target lot size to the additional sub-target price.

13. The method of claim 10, wherein the instant lottery game is a scratch-off lottery game.

14. The method of claim 10, wherein the instant lottery game is a pull- tab lottery game.

15. The method of claim 10, wherein the instant lottery game is a single fixed liability lottery game.

16. The method of claim 10, wherein a minimum standard retailer commission is also part of the commission.

17. The method of claim 10, wherein the commission is offered without a minimum standard retailer commission.

18. The method of claim 10, wherein the prize distribution is a fixed prize.

19. The method of claim 10, wherein payout of the prize distribution is guaranteed by a third party entity.

20. A system comprising: an establishment module that establishes a gross wholesale value for a predetermined quantity of instant lottery game ticket and a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets; a display module that indicates a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players and a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and having a target lot size, each of the plurality of sub- target lots being a subset of the predetermined quantity of instant lottery game tickets and having a sub-target lot size, a ratio of the sub-target lot size to the sub-target price being in a non-linear proportion with a ratio of the target lot size to the target price; a ticket distribution module that provides the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game; a reception module that receives, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer; and a prize distribution module that provides a prize distribution to one of the plurality of instant lottery game players upon receipt of a an instant lottery game ticket with a winning match.

21. The system of claim 20, wherein the non-linear proportion is configured such that the ratio of the target lot size to the target price is greater than the ratio of the sub-target lot size to the sub-target price.

22. The system of claim 20, wherein the instant lottery game is a scratch-off lottery game.

23. The system of claim 20, wherein the instant lottery game is a pull- tab lottery game.

24. The system of claim 20, wherein the instant lottery game is a single fixed liability lottery game.

25. The system of claim 20, wherein a minimum standard retailer commission is also part of the commission.

26. The system of claim 20, wherein the commission is offered without a minimum standard retailer commission.

27. The system of claim 20, wherein the prize distribution is a fixed prize.

28. The system of claim 20, wherein payout of the prize distribution is guaranteed by a third party entity.

29. A system comprising: an establishment module that establishes a gross wholesale value for a predetermined quantity of instant lottery game ticket and a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets; a display module that indicates a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, and an additional sub-target price for each of a plurality of additional sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and having a target lot size, each of the plurality of sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and having a sub-target lot size, a ratio of the sub-target lot size to the sub-target price being in a non-linear proportion with a ratio of the target lot size to the target price, each of the plurality of additional sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and having an additional sub-target lot size, a ratio of the additional sub-target lot size to the additional sub-target price being in a linear proportion with a ratio of the sub-target lot size to the sub-target price; a ticket distribution module that provides the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game; a reception module that receives, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer; and a prize distribution module that provides a prize distribution to one of the plurality of instant lottery game players upon receipt of a an instant lottery game ticket with a winning match.

30. The system of claim 29, wherein the non-linear proportion is configured such that the ratio of the target lot size to the target price is greater than the ratio of the sub-target lot size to the sub-target price.

31. The system of claim 29, wherein the linear proportion is configured such that the ratio of the sub-target lot size to the sub-target price is equal to the ratio of the additional sub-target lot size to the additional sub-target price.

32. The system of claim 29, wherein the instant lottery game is a scratch-off lottery game.

33. The system of claim 29, wherein the instant lottery game is a pull- tab lottery game.

34. The system of claim 29, wherein the instant lottery game is a single fixed liability lottery game.

35. The system of claim 29, wherein a minimum standard retailer commission is also part of the commission.

36. The system of claim 29, wherein the commission is offered without a minimum standard retailer commission.

37. The system of claim 29, wherein the prize distribution is a fixed prize.

38. The system of claim 29, wherein payout of the prize distribution is guaranteed by a third party entity.

39. A computer program product comprising a computer useable medium having a computer readable program, wherein the computer readable program when executed on a computer causes the computer to: establish a gross wholesale value for a predetermined quantity of instant lottery game tickets; establish a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets; indicate a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and having a target lot size; indicate a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and having a sub-target lot size, a ratio of the sub-target lot size to the sub-target price being in a non-linear proportion with a ratio of the target lot size to the target price; provide the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game; receive, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer; and provide a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match.

40. The computer program product of claim 39, wherein the non-linear proportion is configured such that the ratio of the target lot size to the target price is greater than the ratio of the sub-target lot size to the sub-target price.

41. The computer program product of claim 39, wherein the instant lottery game is a scratch-off lottery game.

42. The computer program product of claim 39, wherein the instant lottery game is a pull-tab lottery game.

43. The computer program product of claim 39, wherein the instant lottery game is a single fixed liability lottery game.

44. The computer program product of claim 39, wherein a minimum standard retailer commission is also part of the commission.

45. The computer program product of claim 39, wherein the commission is offered without a minimum standard retailer commission.

46. The computer program product of claim 39, wherein the prize distribution is a fixed prize.

47. The computer program product of claim 39, wherein payout of the prize distribution is guaranteed by a third party entity.

48. A computer program product comprising a computer useable medium having a computer readable program, wherein the computer readable program when executed on a computer causes the computer to: establish a gross wholesale value for a predetermined quantity of instant lottery game tickets; establish a net wholesale value for the predetermined quantity of instant lottery game tickets that is less than or equal to the gross wholesale value for the predetermined quantity of instant lottery game tickets; indicate a target price for each of a plurality of target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of target lots being a subset of the predetermined quantity of instant lottery game tickets and having a target lot size; indicate a sub-target price for each of a plurality of sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and having a sub-target lot size, a ratio of the sub-target lot size to the sub-target price being in a non-linear proportion with a ratio of the target lot size to the target price; indicate an additional sub-target price for each of a plurality of additional sub-target lots of the predetermined quantity of instant lottery game tickets to be sold by the retailer to instant lottery game players, each of the plurality of additional sub-target lots being a subset of the predetermined quantity of instant lottery game tickets and having an additional sub-target lot size, a ratio of the additional sub-target lot size to the additional sub-target price being in a linear proportion with a ratio of the sub-target lot size to the sub-target price; provide the predetermined quantity of instant lottery game tickets to a retailer for distribution to a plurality of instant lottery game players to play an instant lottery game; receive, from a retailer, the net wholesale value for the predetermined quantity of instant lottery game tickets such that a remainder that exceeds the net wholesale value is a commission for the retailer; and provide a prize distribution to one of the plurality of instant lottery game players upon receipt of an instant lottery game ticket with a winning match.

49. The computer program product of claim 48, wherein the non-linear proportion is configured such that the ratio of the target lot size to the target price is greater than the ratio of the sub-target lot size to the sub-target price.

50. The computer program product of claim 48, wherein the linear proportion is configured such that the ratio of the sub-target lot size to the sub- target price is equal to the ratio of the additional sub-target lot size to the additional sub-target price.

51. The computer program product of claim 48, wherein the instant lottery game is a scratch-off lottery game.

52. The computer program product of claim 48, wherein the instant lottery game is a pull-tab lottery game.

53. The computer program product of claim 48, wherein the instant lottery game is a single fixed liability lottery game.

54. The computer program product of claim 48, wherein a minimum standard retailer commission is also part of the commission.

55. The computer program product of claim 48, wherein the commission is offered without a minimum standard retailer commission.

56. The computer program product of claim 48, wherein the prize distribution is a fixed prize.

57. The computer program product of claim 48, wherein payout of the prize distribution is guaranteed by a third party entity.