Internet-based betting system and method

Abstract

 In a person-to-person betting system accessible on-line via the internet, offers of bets are received from persons accessing the system via the internet, each bet offer identifying an event and the odds offered on a given outcome of the event. Such offers are stored and displayed on the system operator's web site. Other persons accessing the web site can then accept one or more of the displayed offers. When the event has taken place, funds are automatically transferred between the accounts of the persons participating according to the outcome of the related event.

Description

[0001] This invention relates to an internet-based person-to-person betting system and method.

[0002] According to the present invention there is provided a person-to-person betting system accessible on-line via the internet, said system comprising means for receiving offers of bets from persons ("offerers") accessing the system via the internet, each bet offer identifying an event and the odds offered on a given outcome of the event, means for storing said bet offers, and means for displaying said bet offers to, and receiving acceptances of displayed bet offers from, persons ("accepters") accessing the system via the internet.

[0003] The invention further provides a method of person-to-person betting on-line via the internet, said method comprising receiving and storing offers of bets from persons ("offerers") via the internet, each bet offer identifying an event and the odds offered on a given outcome of the event, storing said bet offers, and displaying said bet offers to, and receiving acceptances of displayed bet offers from, persons ("accepters") via the internet.

[0004] An embodiment of the invention will now be described, by way of example, with reference to the accompanying drawings, in which:

Fig. 1 is a block diagram of the system architecture of an internet-based betting system; and

Fig. 2 is a flow diagram of the operation of the system.

[0005] The embodiment of the invention provides an on-line internet-based system for individuals to place bets with each other using the system operator as the bet stakeholder. The system comprises a number of components, described below, which allow customers to place bet offers for display by the system (a bet offer is an offer to enter into a bet at stated odds on the stated outcome of a future event), and allow customers to accept bet offers so placed and displayed. The system also allows a customer to register his willingness to accept bets at particular odds regardless of the existence of an existing bet offer at that time (pre-acceptance).

[0006] All customer interaction with the system is via the system operator's web site, and customers are given unique identifiers during any interaction with the system which enables the customer interactions with the system to be tracked. The system components allow for the placing and accepting of bet offers via internet HTML browsers, WAP mobile phones, digital television and games console. The components further allow for the transmission of information concerning bets placed and accepted with the system to persons registered with the system servers via email and SMS messaging. The system receives and stores the information concerning the placement and acceptance of bet offers. The system requests from customers funds to cover bets by prefunding by cheque and/or money transfer and/or funded through debit cards and/or credit cards.

[0007] Fig. 1 is a block diagram of the system architecture of the embodiment. The system comprises the following components, some of which are, or may be, third party products or services as noted:

[0008] HTML applications 10 - These are programs that execute in a web browser. The web browser can be located on a customer's computer, digital television or games console. The HTML applications allow customers and system operations staff to interact with the system. The applications are written primarily in HTML but may also contain sections of code in the javascript or jscript scripting languages. The HTML applications allow customers to place and accept bet offers, view events, view event results, list bets, update customer details, list categories of events, list outcomes of bets, send SMS messages, view help information, view customer account details, and challenge other customers to bets. The HTML applications allow system operations staff to inspect, maintain and administer the system components, inspect, maintain and administer customer accounts, categories of events, events, bets, results, bet outcomes, customer details, send SMS and email messages to customers.

[0009] WML application 12 - This is a program that runs on a customer's mobile phone, personal digital assistant or other mobile device that supports the WAP protocol. The application is written in the WML language but may include sections of code written in WMLScript scripting language. The WML application allow customers to place and accept bet offers, view events, view event results, list bets, list categories of events, list outcomes of bets, send SMS messages, view help information, and view customer account details.

[0010] Web Server 14 - This is a standard third party web server that handles interaction requests from the HTML and WML applications 10, 12 and communicates with the message dispatcher 18.

[0011] Middleware Engine 16 - This is the heart of the system. The business rules, business processes and logic are contained and executed here.

[0012] Message Dispatcher 18- This dispatches messages from the web server 14 to the middleware engine 16. It controls the sending and receiving of messages between the HTML and WML applications 10, 12 and the middleware engine 16.

[0013] Database 20 - This is used to store data used and generated by the system. Information stored includes customer details, customer account details, details of bet offers placed and accepted, details of results, bet outcomes, categories of events, details of events.

[0014] SMS gateway 22 - The is a third party service which the middleware engine 16 interfaces with to send Short Text Messages to customers' mobile phones.

[0015] Email gateway 24 - This is a third party service which the middleware engine 16 interfaces with to send email messages to customers' email accounts.

[0016] Secure email 26 - This is a third party product which encrypts email being sent to customers to ensure authenticity.

[0017] Payment/card processing centre 28 - This is a third party service which the middleware engine 16 interfaces with to handle credit and debit card processing (charging and chargebacks).

[0018] Security (web server) 30 - This is a third party service which certifies to customers that they are interacting with the genuine system. It also handles encryption of information between customers and the system.

[0019] Notice board/Chat forums 32 - This is a third party service that allows customers to post messages to virtual notice boards for other customers to read and also provides chat forums (also called chat rooms) that allow customers to hold interactive text conversations with other customers.

[0020] The operation of the system and the interaction of the various components described above will be apparent from the flow chart shown in Fig. 2.

Step 100:

[0021] A customer boots his PC, establishes a connection with his Internet Service Provider to access the internet and starts an internet web browser program to enable him to access web sites. The customer browses to the system's internet website homepage by typing the site address (the URL) into his internet web browser. The customer is presented with the first page of the system's website. On that screen is a button labelled "login". If the customer selects the button he is prompted for a username and password. The customer enters his unique username and password and logs onto the system. The username and password have been allocated to the user during the customer registration process which occurred prior to the current interaction. Alternatively the customer may log in to the system using a WAP phone (WML application 12).

Step 102:

[0022] After logging-in the customer is presented with a screen listing the categories of events (football, horse racing, golf, etc.) in which betting can occur. This list is fetched from the system database 20.

Step 104:

[0023] The customer selects a category of events he wishes to view.

Step 106:

[0024] The customer is presented with a list of events in the selected category (e.g., list of football matches to be played). This list is fetched from the system database 20.

Step 108:

[0025] The customer selects a particular event within the selected category (e.g., Manchester United to win the Premier League).

Step 110:

[0026] The customer is presented on-screen with a list of all the current bet offers on the selected event. This list is fetched from the system database 20. Each bet offer states the odds offered on a particular outcome of the event and the maximum stake which may be wagered by another customer wishing to accept the bet offer (herein referred to as the "stake limit").

[0027] For example, a listed bet offer may offer odds of 3/1 on Manchester United winning the Premier League with a stake limit of £25. This means that the offerer (i.e. the person having placed the bet offer) will pay odds of 3/1 if Manchester United do in fact win the Premier League but wishes to limit his loss to a maximum of £75. The maximum loss which a bet offerer is willing to stand, i.e. £75 in the above example, is referred to herein as his "exposure".

[0028] Also on screen are menu options to allow the customer to do one of three things:

a. Place a new bet offer on the event that others can accept.

b. Accept an actual displayed bet offer.

c. Place a pre-acceptance of a bet offer meeting the customer's requirements regardless of the existence of an actual displayed bet offer at that time.

[0029] The customer can place, accept or pre-accept a bet on any displayed event that hasn't declared a result except in the case of an event that the system has locked shortly before the expected time of the result.

[0030] Depending upon the customer's choice, the system goes to step 112, 114 or 116. Assuming the customer wishes to place a new bet offer on the event, choice (a):

Step 112:

[0031] The customer chooses to create a new bet offer that other individuals can accept.

Step 118:

[0032] The customer enters the odds he is offering on a particular outcome of the event and his exposure. Thus, using the above example, he would enter odds of 3/1 on Manchester United winning the Premier League and an exposure of £75, corresponding to a stake limit of £25.

Step 120:

[0033] The system asks the customer to confirm that he is willing to accept this exposure amount. If so, the details of the bet offer are written to the database 20.

Step 122:

[0034] The exposure amount is either (1) debited from the customer's credit card or debit card, and this is confirmed to the customer on the customer's screen, or (2) debited from a prefunded account held by the customer. All such debiting is done immediately, the amount exposed for the transaction being marked in the customer's account and frozen. It cannot be used for another transaction until the event has been completed.

[0035] Assuming at step 110 that the customer wishes to place a pre-acceptance of a bet offer, choice (c):

Step 114:

[0036] The customer chooses to create a pre-acceptance of a bet offer.

Step 124:

[0037] The customer enters the minimum odds he is requesting on a particular outcome of the event and the maximum stake he is willing to wager. Thus, using the above example, he would state that he is looking for odds of 3/1 or better on Manchester United winning the Premier League and is willing to stake up to £25.

Step 126:

[0038] The system asks the customer to confirm that he is willing to risk this stake amount. If so, the details of the pre-acceptance are written to the database 20.

Step 128:

[0039] The stake amount is either (1) debited from the customer's credit card or debit card, and this is confirmed to the customer on the customer's screen, or (2) debited from a prefunded account held by the customer. All such debiting is done immediately, the amount exposed for the transaction being marked in the customer's account and frozen. It cannot be used for another transaction until the event has been completed.

Step 130:

[0040] Returning to step 122, when a bet offer has been placed the system software program running on the system servers automatically attempts to match the odds and exposure entered at step 118 with a suitable pre-acceptance stored on the database at step 126. The system will match the bet offer with a pre-acceptance if the former offers the same or more favourable odds than those requested by the pre-acceptance. Thus, if, for example, the bet offer offered odds of 7/2, this would be matched by a pre-acceptance requesting odds of 3/1 or better.

[0041] Where there is more than one pre-acceptance which matches the bet offer, the one chosen is that whose requested odds are closest to those offered by the bet offer. For example, if the bet offer offers 4/1, and there are two pre-acceptances respectively requesting 7/2 or better and 3/1 and better, the former will be used to match the bet offer.

[0042] If the maximum stake of the matched pre-acceptance, as entered at step 124, is less than the stake limit of the bet offer, as determined by the exposure entered at step 118, then the pre-acceptance (if any) requesting odds next closest to those offered by the offerer will be matched to the residue of the offerer's stake limit, and so on until there are no more matching pre-acceptances or the stake limit is exhausted.

[0043] Where the stake limit, or the residue thereof, is less than the maximum stake, as entered at step 124, of a matching pre-acceptance, then only the corresponding part of the maximum pre-acceptance stake is used in the match, leaving some residue of the pre-acceptance stake for matching with another, future, bet offer.

Step 132:

[0044] All matched bet offers and acceptances, with their corresponding stakes and odds, are registered on the database 20. If any bet offer entered at steps 112-122 was not matched with a pre-acceptance, or there was a residue of the stake limit after matching, that bet offer together with the related odds offered and the stake limit, or residue thereof, is added to the list available to customers at step 110.

[0045] Also, the database 20 is updated with the details of all pre-acceptances which remain unmatched after step 130, or for which there is a residue of the stake.

[0046] Assuming at step 110 that the customer wishes to accept an actual displayed bet offer, choice (b):

Step 116:

[0047] The customer chooses to accept one of the bets offered.

Step 134:

[0048] The customer decides from the market data available that he is willing to wager an amount (say £25). The customer then enters this stake. Obviously his stake must be no greater than the stake limit of the bet offer he is accepting.

Step 136:

[0049] The system prompts the user to confirm the transaction.

Step 138:

[0050] The stake amount is either (1) debited from the customer's credit card or debit card, and this is confirmed to the customer on the customer's screen, or (2) debited from a prefunded account held by the customer. All such debiting is done immediately, the amount exposed for the transaction being marked in the customer's account and frozen. It cannot be used for another transaction until the event has been completed.

Step 140:

[0051] The matched bet offer and acceptance is registered on the database 20. If the stake wagered at step 134 was less than the stake limit (or residue thereof after partial matching at step 132) displayed for the accepted bet offer, the displayed stake limit for that bet offer is reduced by the amount of the stake wagered at step 134.

Step 142:

[0052] On completion of the event the system is updated manually or automatically by electronic means of the event result. The result is written to the system database and displayed on a page on the system website.

Step 144:

[0053] For each pair of matched bet offers/(pre-)acceptances registered in the database 20 for the event concerned, funds are transferred from the offerer's account to the accepter's account or vice versa according to the outcome of the event. The transfers occur indirectly via an omnibus holding or clearing account owned by the system operators. The participating customers are sent email and/or SMS messages of the result of the event and the bet outcome.

[0054] The invention is not limited to the embodiment described herein which may be modified or varied without departing from the scope of the invention.

Claims

1. A person-to-person betting system accessible on-line via the internet, said system comprising means for receiving offers of bets from persons ("offerers") accessing the system via the internet, each bet offer identifying an event and the odds offered on a given outcome of the event, means for storing said bet offers, and means for displaying said bet offers to, and receiving acceptances of displayed bet offers from, persons ("accepters") accessing the system via the internet.

2. A betting system as claimed in claim 1, wherein each displayed bet offer indicates the maximum stake which may be wagered by an accepter, and wherein each bet offer acceptance indicates the stake to be wagered.

3. A betting system as claimed in claim 2, wherein the system reduces said indicated maximum stake by the amount of the stake wagered where the latter is less than the maximum stake.

4. A betting system as claimed in claim 2, further including means for receiving pre-acceptances from persons ("pre-accepters") accessing the system via the internet, each pre-acceptance identifying an event, the minimum odds requested for a given outcome of the event and a stake desired to be wagered on said outcome, said system further including means for automatically matching a pre-acceptance with a received bet offer offering the requested or more favourable odds on the given outcome of the event, the stake wagered in such event being the lesser of the offerer's indicated maximum stake and the pre-accepter's desired stake.

5. A betting system as claimed in claim 4, wherein if there are a plurality of pre-acceptances which match a received bet offer the system matches the pre-acceptance whose requested odds most closely match the odds offered by the offerer.

6. A betting system as claimed in claim 5, wherein if the stake of the matched pre-acceptance is less than the indicated maximum stake for the bet offer the pre-acceptance whose requested odds next most closely match the odds offered by the offerer is matched to the bet offer, and so on until the indicated maximum stake is exhausted or there are no more matching pre-acceptances.

7. A betting system as claimed in claim 1, further including means for transferring funds between an account of an offerer and an account of an accepter according to the outcome of the related event.

8. A method of person-to-person betting on-line via the internet, said method comprising receiving and storing offers of bets from persons ("offerers") via the internet, each bet offer identifying an event and the odds offered on a given outcome of the event, storing said bet offers, and displaying said bet offers to, and receiving acceptances of displayed bet offers from, persons ("accepters") via the internet.

9. A method as claimed in claim 8, wherein each displayed bet offer indicates the maximum stake which may be wagered by an accepter, and wherein each bet offer acceptance indicates the stake to be wagered.

10. A method as claimed in claim 9, including reducing said indicated maximum stake by the amount of the stake wagered where the latter is less than the maximum stake.

11. A method as claimed in claim 9, further including receiving pre-acceptances from persons ("pre-accepters") accessing the system via the internet, each pre-acceptance identifying an event, the minimum odds requested for a given outcome of the event and a stake desired to be wagered on said outcome, and automatically matching a pre-acceptance with a received bet offer offering the requested or more favourable odds on the given outcome of the event, the stake wagered in such event being the lesser of the offerer's indicated maximum stake and the pre-accepter's desired stake.

12. A method as claimed in claim 11, comprising matching the pre-acceptance whose requested odds most closely match the odds offered by the offerer if there are a plurality of pre-acceptances which match a received bet offer.

13. A method as claimed in claim 12, wherein if the stake of the matched pre-acceptance is less than the indicated maximum stake for the bet offer the method further includes matching to the bet offer the pre-acceptance whose requested odds next most closely match the odds offered by the offerer, and so on until the indicated maximum stake is exhausted or there are no more matching pre-acceptances.

14. A method as claimed in claim 8, further including transferring funds between an account of an offerer and an account of an accepter according to the outcome of the related event.

Drawing